04/01/2024 | Press release | Distributed by Public on 04/01/2024 09:02
On March 20, the Environmental Protection Agency (EPA) finalized a tailpipe vehicle emissions rule - a de facto ban on the sale of gas-powered and traditional hybrid vehicles - forcing automakers to sell more electric vehicles (EVs).
Experts and lawmakers agree: the Biden administration's new rule will increase the cost of vehicles for the majority of Americans, onlybenefiting high-income earners.
Word on the Street:
Via New York Times:
Big Picture:
Even with the $7,500 federal tax credit for EVs, middle-class Americans cannot afford the switch from traditional energy to electric-powered vehicles.
The auto industry continues struggling to meet the EV sales projections set forth by Washington Democrats. For instance, the Ford Motor Company sold just 24,000 of its new electric 'F-150 Lightning' trucks in 2023, falling far behind the company's initial expectation of reaching 150,000 car sales.
The green energy and EV tax credits included in the final passage of the Inflation Reduction Act (IRA) were initially estimated to cost the taxpayer $369 billion over the next decade. Since then, the revised cost estimate for such provisions has dramatically increased, now hitting an "estimated $1.2 trillion," according to a Goldman Sachs analysis.
The Congressional Budget Office (CBO) initially estimated that EPA's tailpipe emissions rule wouldadd $224 billion to the deficit by increasing the usage of EV tax credits and reducing revenues from the gas tax.
The target outlined in the EPA's final rule ignores the current limitations in battery technology and the global supply chain constraints on critical minerals necessary for the rapid expansion of EVs. Without serious reforms, the EV transition stands to benefit our greatest adversary more than Americans-who are already footing the bill.
The Bottom Line:
The American taxpayer should not be on the hook for hundreds of billions of dollars imposed by radical policies to create an artificial market for something very few want or can even afford. President Biden's Fiscal Year 2025 (FY25) budget is filled with even more spending and taxing that would harm Americans:
These dangerous policies will worsen the debt crisis and further plunge our economy into despair.