Trump Says to End All Government Electric Subsidies

from IBD:

Trump Is Right — Subsidies For Electric Cars, Renewable Energy Must End

President Trump’s economic adviser Larry Kudlow says subsidies for electric cars and other renewable energy programs might soon be eliminated. That would be a major victory on the road to energy freedom.

National Economic Council chief Kudlow, a well-known free marketeer and supply-sider, said subsidies might disappear as soon as 2020 — interestingly, the next presidential election year. The decision comes after General Motors — the beneficiary of $2,500-$7,000 tax credits for those who buy GM’s plug-in cars, not to mention two separate corporate tax cuts — decided to close five North American plants, leaving 14,700 workers without jobs. The move infuriated Trump.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow said. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.” read more

If You Want Less of Something, Tax It – If You Want More, Subsidize It

by: the Common Constitutionalist

The bain of the private sector is taxes. Everyone knows this. Taxes lead to less hiring (except for tax accountants and attorneys), less profit and companies are less competitive. And the higher the tax rate, the worse it all becomes.

On the flip side, subsidization can be a boon to the private sector. If your company is lucky enough or connected enough to somehow get your product(s) subsidized, you are assured of more sales. It’s a great deal! By having your product or business subsidized, you can effectively undercut your competition and sell many more units than you otherwise would.

But how does one get their product subsidized, and who would be stupid enough to do such a thing? The answer to the “who” question is the government. State and municipal governments often offer huge tax incentives to lure companies to set up shop. Sometimes the incentives to these companies are zero taxes for a period of time. This is a form of indirect subsidy, allowing the company to lower it’s costs and increase the margin on its products lowering the price of the product(s). The company obviously benefits from a lessened tax burden, and the state or city benefits from increased employment. It’s a win-win.

Then there are federal government subsidies, which are directed to a certain product or industry. These days it’s the “green” industry. Everything “green” or “renewable” is heavily subsidized by the feds. This arrangement is a win-lose. The subsidized never has to reimburse the subsidizer. read more

Tesla and the War on Coal

by: the Common Constitutionalist

You may have seen pictures of Elon Musk, CEO of Tesla Motors, playing amateur daredevil as he tried his hand at wing walking the other day. Yes, he’s happy-go-lucky, living high on the hog – his coffers full of government largess.

So dependent upon the government for its survival, Tesla’s 2014 annual report stated: “Our growth depends in part on the availability and amount of government subsidies and economic incentives.”

That’s a pretty bold and honest statement. Let me rephrase that. It’s a pretty bold statement, for to be honest, Musk’s company depends almost entirely on the generosity of us ignorant taxpayers, in one form or another.

They don’t sell many cars, and the money they do make is through a myriad of tax credits and other government giveaways. It’s a great scheme and the model for crony corporatism.

Tesla, by all estimates is a great car, but the company couldn’t survive a year in a real free-market. Yet they are evidently not content with their current method of fleecing the American public. read more