“Costly Subsidies for the Rich” Cited in Moneywatch Story on EV Tax Credits
Can Trump yank GM’s electric vehicle tax credit?
By Rachel Layne
On Tuesday, President Donald Trump vented his anger at General Motors after the company several plant closings and more than 14,000 layoffs. The president threatened to eliminate tax credits for GM’s electric vehicles along with other tax breaks and subsidies.
“The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including … for electric cars,” Trump tweeted.
However, taking away that credit, which is phasing out for GM models anyway, may prove difficult for Mr. Trump . . .
Higher-income households benefit most
The EV credit has been criticized for benefiting mostly wealthy drivers. Roughly 79 percent of EV tax credits are claimed by households with adjusted gross annual incomes above $100,000, according to a study from Pacific Research Institute earlier this year. It found that households earning more than $50,000 per year claimed 99 percent of the credits.