Posted on 11/25/2021 8:54:18 PM PST by SeekAndFind
In yet another example that powerful teachers unions and labor unions enjoy joint custody of Joe Biden and the Democrat Party, the ridiculously named socialist monstrosity “Build Back Better” Act contains a provision that provides a tax credit of up to $12,500 to purchasers of electric vehicles — other than Teslas.
Why not Teslas? Three words: United Autoworkers Union.
That’s right, America, as reported by CBS News, only electric vehicles made in unionized U.S. factories qualify for the full $12,500. However, if Tesla it must be, your tax credit would be capped at $7,500.
The full $12,500 tax credit will only be available for union-built electric cars, which cuts out nonunion Tesla, Toyota and Honda. Democrats place a higher priority on rewarding their union friends than maximizing the number of electric cars on the road. https://t.co/4dJHnP0aF9
— atasteofcreole (@atasteofcreole) November 25, 2021
Here’s the breakdown, per CBS News:
- A credit of up to $7,500 for an electric or plug-in hybrid vehicle, defined as a car with a battery capacity of at least 40 kilowatt-hours and a gas tank, if any, under 2.5 gallons.
- An additional $500 credit for a car with a battery pack made in the U.S.
- An additional $4,500 credit for cars assembled at a unionized U.S. plant. (Currently, only plants owned by GM, Ford, and Stellantis qualify [formerly, Fiat-Chrysler].)
“Coincidentally,” as noted by CBS, Rep. Dan Kildee (D-MICHIGAN), the provision’s co-author, admitted he included the bonus funding after being advised by General Motors and the UAW “about the importance of including an explicitly pro-union component.”
In addition, to qualify for tax credits under Biden’s BBB (Build Back Broke), electric vehicles must fall under a price limit. Vans, sports utility vehicles, and pickup trucks need to be under $80,000 to be eligible for the credit; for all other cars, the price limit is $55,000.
There’s also an income limit for taxpayers to receive the credit: $500,000 for married couples and $250,000 for single buyers. “These limits are intended to direct the EV credit more toward middle- and working-class people,” Mike Fiske, an analyst at IHS Markit, told CBS News.
Finally, it’s important to understand the basics, here. The provision is a tax credit — up to federal income tax owed — not a refund.
“This credit is at the point of purchase — it’s not a credit that you apply for,” Kristin Dziczek, senior vice president of research at the Center for Automotive Research, told CBS. “It’s going to come straight off a loan or the price of the vehicle.”
One wonders — this one, anyway — who this credit is really for.
Given that Tesla founder and CEO Elon Musk isn’t exactly on the official Democrat Christmas card list and the reality that the Democrat Party has done the bidding of the United Autoworkers and other powerful labor unions for decades, I’m gonna put my money on the UAW and related unions.
In October, as reported by Reason, Biden all but admitted it. During a visit to a UAW job training center, he bragged about the EV proposal. “I want those jobs here in Michigan,” he declared — rather than in states like Tennessee or Kentucky, where UAW membership is less of a certainty.
Editorial: Biden's UAW protection plan is unfair, inappropriate https://t.co/bsvK5fnojg
— Detroit News Opinion (@DetNewsOpinion) November 17, 2021
The worst part about the Democrat Party in situations like this — blatant pandering to labor unions — is the complete disingenuousness of the whole thing. We know — and they know we know — that “climate change,” “green energy,” and fossil fuels have less to do with this provision, along with taxpayer relief and “good-paying jobs,” and more to do with delivering to the UAW exactly what it expects.
Doubt it? One look at the Democrat coddling of teachers’ unions should eliminate any doubt.
In other fun RedState Biden news:
Biden and Dems Can’t Decide Which Spin to Use for Those Skyrocketing Thanksgiving Prices
The Press Takes a Decidedly Different Stance Towards the Bidens’ White House Christmas
Do Not Fall for Joe Biden’s Slick New Oil Trick
How is that even legal?
The Unreliable Awful Workers strike again.
Not interested.
Congress wants to track mileage so Electric car owners can pay there “fair share” of road taxes.
How about not subsidizing people to buy them and their subsidy is they don’t have to pay gasoline road taxes.
This proves tracking miles is about control, and not paying for roads.
Hold on a second,
So the taxpayers have to pay for those who can afford to buy an electric vehicle?
What’s wrong with this picture?
What’s wrong with this picture?”
Joe Biden
Impeach 46.
This article tells how much it costs to install an EV charger at your home. If you are charging two EVs, double the costs:
https://blog.carvana.com/2021/07/how-much-does-it-cost-to-install-an-ev-charger/
“This credit is at the point of purchase — it’s not a credit that you apply for,” Kristin Dziczek, senior vice president of research at the Center for Automotive Research, told CBS. “It’s going to come straight off a loan or the price of the vehicle.”
Time out. The two statements of Ms. Kristin cannot each be true.
A tax credit comes into play when you file your taxes - not when a vehicle is purchased.
It cannot come "straight off the price of the vehicle" because we do not know what our tax debt will be, at the time we would buy a vehicle.
I buy an $80,000 SUV on Jan 2. I get laid off the next week. My income goes from good to -zero- just like that. How does the tax credit work now, since we didn't know my future annual salary when I bought the SUV? And now I owe little or nothing in taxes?
Or what if I put solar on my house, get 26% back on that, buy a union EV SUV and get $12,500, and adopt a special needs child and get 100% credit back from that? Would I need to make $500,000 to owe enough in taxes to get it all back in a year?
Sounds like this part of the bill is for upper middle income and above, and the whole thing is probably illegal due to the "union only" provision.
Does anyone really think that Chinese EVs won't be added to the list after this foul stench of a bill gets passed? After all, China could state that all of their auto factories are union - the CCP union.
Do golf carts qualify?
All over the internet you can find photos of electric cars charging up at stations that have diesel generators. They end up using more diesel to recharge the batteries than if the car itself ran off the diesel in the first place.
Also, if you go electric and have a lithium battery, please park it several parking spaces away from other cars because once the lithium battery catches fire, not only is your electric car a goner, but so is any vehicle parked next to it.
What idiots these leftist totalitarians are
Not nearly enough.
It’s not enough to selectively enforce the law, Democrats will now implement a tax structure explicitly designed to rob from the conservatives and libertarians to give to the liberals. It’s their Robbing Hoodlums plan.
BILL_OF_ATTAINDER_PING
Looking at other articles, the proposal appears to be a tax credit refund. If you pay cash for the vehicle the government isn't going to cut you a check at the time of the sale. You would have to wait until filing taxes to get any refund due.
Meanwhile the major components of GM vehicles are made in Mexico and the plastic parts in Canada. The UAW workers merely bolt or snap the components together with the help of robotic arms.
😱
Deep State really doesn’t want us driving, do they...
New Qualified Plug-In Electric Drive Motor Vehicle Credit
https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit
Well, that is still a pretty good deal. Previously, federal tax credits were no longer available for Teslas, because they had exceeded they established number of vehicles sold limit.
On the other hand, battery electric vehicles will not be sustainable. Not a viable technology,…. Wait for it…… based on resource inputs.
If we want to limit automobile ownership to the top 10% or so of drivers, it might be Possible with battery powered cars. Everyone else can get bicycles or skateboards or skates.
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