‘Raise serious questions regarding the wisdom of the current subsidy policies…’
(Joshua Paladino, Liberty Headlines) A new study from the Pacific Research Institute found that the federal government has paid nearly $43 billion in subsidies for electric vehicles, and the vast majority of the money has gone to wealthy households, according to OurEnergyPolicy.org.
Wayne Winegarden, senior fellow at the Pacific Research Institute, analyzed Internal Revenue Service income statistics to determine who has received government subsidies for electric vehicles.
In 2014, the federal government paid nearly 79 percent of all consumer tax credits to households with an adjusted gross income of more than $100,000.
The federal government paid the wealthiest 5 percent of Americans — those who make more than $100,000 per year — more than $207 million in 2014.
The federal government paid another $54 million to households earning more than $50,000 per year.
Winegarden said “over 99 percent of the total tax credits went to households with an AGI above $50,000.”
Less than 1 percent of federal subsidies assisted the middle and lower classes in obtaining electric vehicles.
The federal government’s consumer tax credit for electric vehicles is $7,500.
States and local governments also pay up to $7,500 per person, depending on the state and municipality.
Governments subsidize electric vehicle consumers indirectly, too.
State and local governments “subsidize investments in charging stations, and even offer perks such as access to HOV lanes, access to free vehicle charging, and free meter parking.”
“Putting it all together, the size of the EV subsidies are substantial, EV subsidies favor certain competitors over others, and the subsidies benefit upper-income households at the expense of lower-income households,” Winegarden said. “These realities raise serious questions regarding the wisdom of the current subsidy policies.”