President Joe Biden plans to meet with the CEOs of General Motors and Ford to discuss proposals to subsidize electric vehicle purchases that were included in the Biden Administration’s legislative proposals, according to reports.
CEI Senior Fellow Ben Lieberman pointed out that EV subsidies benefit wealthier Americans:
“President Biden’s meeting with the CEOs of GM and Ford should remind Americans that subsidies for Electric Vehicles are actually tax breaks for the wealthy, given that most EV buyers have household incomes in excess of $100,000 a year and are buying a second or third car. The original rationale for EV subsidies—that this was an infant industry in need of help getting established—has long since stopped being true. It is debatable whether these subsidies ever made sense when they were first imposed more than a decade ago, but they certainly don’t make sense any more.
“The last thing Washington politicians should do right now is subsidize car makers to make vehicles most Americans don’t want. Car makers should compete to make cars consumers do want.”