President Trump tweeted his intent to cut subsidies for electric vehicles. GM, which has been lobbying for an expansion of the federal tax credit, recently announced their intent to close a number of U.S. and Canadian plants. AEA applauds President Trump for opposing these costly federal subsidies. AEA President Thomas Pyle made the following statement:
“President Trump is right to call for eliminating the costly federal subsidies going to electric vehicles, which were put in place to reduce our dependence on foreign oil. Today, they are no longer needed since America is now leading the world in energy production.
The electric vehicle subsidy benefits a privileged few at the expense of all taxpayers. The tax credit subsidizes expensive vehicles that only a fraction of wealthy Americans want and aren’t necessarily better for the environment than modern internal combustion engines. Ending electric vehicle subsidies is a first step toward getting government out of the business of picking winners and losers, and instead forces all vehicles to compete for market share on a level playing field. We urge Congress to follow President Trump’s wishes and put these subsidies to an end once and for all during this lame duck session.”
AEA is a not-for-profit organization that engages in grassroots public policy advocacy and debate concerning energy and environmental issues. AEA is the advocacy arm of the Institute for Energy Research, a tax-exempt public foundation that conducts intensive research and analysis on global energy markets.
