EV tax credits in danger because of budget crisis?

[voyager]

I was wondering whether EV tax credits risk getting slashed because of the budget crisis.
I know that many/most Republicans are against this part of the IRA.

https://fee.org/articles/republican-senator-takes-aim-at-a-democratic-tax-credit-that-disproportionately-benefits-the-rich/

"Repealing the law's tax credits would save the United States $570 billion over the coming 10 years,
according to the nonpartisan Congressional Budget Office."

Solar, EV firms say Republicans' debt limit a 'stunt' that could cost jobs

Solar and EV companies are warning that a Republican plan to slash federal spending in exchange for a hike in the U.S. debt ceiling could hobble the tax incentives that unleashed billions of dollars in green investment and created tens of thousands of jobs in Republican districts over the past year.

www.reuters.com

 

[Tam]

I was wondering whether EV tax credits risk getting slashed because of the budget crisis.
I know that many/most Republicans are against this part of the IRA.

https://fee.org/articles/republican-senator-takes-aim-at-a-democratic-tax-credit-that-disproportionately-benefits-the-rich/

"Repealing the law's tax credits would save the United States $570 billion over the coming 10 years,
according to the nonpartisan Congressional Budget Office."

Solar, EV firms say Republicans' debt limit a 'stunt' that could cost jobs

Solar and EV companies are warning that a Republican plan to slash federal spending in exchange for a hike in the U.S. debt ceiling could hobble the tax incentives that unleashed billions of dollars in green investment and created tens of thousands of jobs in Republican districts over the past year.

www.reuters.com

Currently, it's a debt ceiling crisis and not a budget one.

The 2023 budget was approved and all the debts must be paid without questions (amendment 14).

What the Republicans are blackmailing is to take hostage of the President because they will default the national debt if the President won't cut the future 2024 budget.

Of course the Republicans are not happy about spending money for EV tax credits but whether they can cut the EV credits is another problem: The President must cave for that to happen.

Clinton didn't cave so the Republican-led congress refused to pay and government workers didn't show up to work during the government shutdown. The Whitehouse was unusually empty and quiet when unpaid workers didn't show up. Guess what happened when there's no chaperone for the intern Monica Lewinsky and President Clinton?

Clinton almost lost his job, not because of the shutdown, but because of the sex.

People blamed the Republicans for the shutdown. The house speaker Newt Gingrich failed while Clinton was re-elected for a second term.

 

[voyager]

Currently, it's a debt ceiling crisis and not a budget one.

You're right. I stand corrected. Thx.

 

[Tam]

You're right. I stand corrected. Thx.

An illustration: Your boss approved paying for the team for dinner. There's an assurance that if there's not enough cash, the business credit card will be used, so don't worry.

After you finish with all the food, the food is now already in your stomach. You are now full and at no risk of hunger for the night. So what's the problem?

Your boss threatened that if you don't revise next year's budget, tonight's dinner will not be paid even though the credit card is ready. Without payment, the police might be called and the team might be jailed.

But again, the food has already been in the stomach. Your tummy is safe for the night. Tomorrow is another story.

Back to the EV credit: the year 2023 EV credit is now safe whether the next year's budget will be agreed or not. 2024 EV credit is another story pending an agreement.

 

[voyager]

Still... the question stands since the Republicans made this about spending:
could they frustrate EV tax credits programs by the government?

 

[Tam]

Still... the question stands since the Republicans made this about spending:
could they frustrate EV tax credits programs by the government?

2023 ev credits are safe.

What at risks are the unapproved budget which is 2024.

Since we are in 2023 and no one can buy 2024 yet because the time travel technology is not perfected just yet, so the answer is still no. Your EV credits are not in danger. They are covered for this year.

Remember, debt ceiling crisis doesn't affect the approved 2023 budget and spending.

Even when the debts are in default, amendment 14 assures that they shall not be questioned. That means the US might default on the debts but the debts will be paid sometime after that. It's just like a late payment not a permanent refusal to pay up.

By the way, current Republican's proposal is no longer going after EV credits. They feel a more pressing priority to crack down on foodstamp recipients who don’t work at least 20 hours per week.

What it means is: double-strength NO. Your 2023 and 2024 EV credits are not in danger.

 

[Tam]

I was wondering whether EV tax credits risk getting slashed because of the budget crisis.
I know that many/most Republicans are against this part of the IRA....

The original Republican proposal did cut the ev credits for future budget but the one that was just passed tonight no longer has such cuts:

Tax Credits Survive Contentious Battle over Debt Ceiling

You can count on tax incentives for all-electric commercial trucks and vans and used PHEVs and fuel-cell vehicles.

www.autoweek.com

Now, let's see how the Senate will vote!

 

[DP26]

Nothing is safe. Ask any employer who has the q4 2021 ERC repealed (cancelled DURING q4 2021 AFTER some employers spent the credit amount t promised via law. Note, it was repealed to help pay for the IIJA act.

 

[Tam]

Nothing is safe. Ask any employer who has the q4 2021 ERC repealed (cancelled DURING q4 2021 AFTER some employers spent the credit amount t promised via law. Note, it was repealed to help pay for the IIJA act.

Agreed.

A law can be passed and it too can be repealed, so you are right that nothing is safe in that sense.

In this thread, ev credits was originally to be slashed but the Republicans later on had made it clear to drop that demand.

Thus, in this thread, EV credits are safe unless there's an announcement to go after them.

 

[DP26]

It used to be taxes were set and stable. Unfortunately, those we elect use things like withholding to try to gain favor. Interestingly, the current administration has not monkeyed with federal withholding. Likely the reason is the former administration cut federal withholding beyond what was practical and caused many to have to pay at the end of year. This is not a red or blue issue as it had happened with every administration prior, to at least Mr. Reagan.

Idaho, for instance, has decided to adjust their taxes mid year for quite some time (as an example).

 

[voyager]

Anyone read this?

Biden Is Ignoring the Menace of Mega-EVs

Environmental hype has crowded out any concern for people outside the vehicle.

www.theatlantic.com

 

[Tam]

Anyone read this?

No, not until you shared its link just now.

The article's main concern:

"America’s penchant for big cars is killing people, and electrification could exacerbate the problem."

It is a valid concern but it’s the market that dictates the size of a vehicle.

Before the oil embargo, Americans didn’t care for smaller vehicles and the gas guzzlers were in high demand.

All that changed with the oil embargo and suddenly, smaller size vehicles from Japan were in high demand.

Now big size vehicles are in high demand again.

The article suggests to penalize big size vehicles with government fees in order to slow down its demands.

In so doing would also reduce EV demands due to the inherent heavy weight of the battery.

We need some one who is smart enough to promote EVs while addressing the weight concerns.