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.”
No doubt there will be much wailing and gnashing of teeth within the Green Movement. How will electric cars survive without government’s guiding hand?
The answer is, most won’t. Otherwise, the federal government wouldn’t need to subsidize them.
As it is now, subsidies for each manufacturer are capped at 200,000 vehicles. Then the electric car credit starts to phase out.
Tesla is already in the phaseout; GM will get there soon.
No doubt, the new Democratic House will fight hard to keep the subsidies in place or even remove them entirely. And Kudlow admits that the White House can’t act unilaterally to end the program.