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Republicans Seek to Use Tax Bill to Suppress Climate and Clean Air Saving Electrical Vehicles

Republicans in Congress seem more concerned with cutting taxes for the rich than dealing with present and worsening problems like Russian interference in U.S. democracy or the ever-escalating damages coming from human-caused climate change related to fossil fuel burning. In fact, the Republican Party today signaled its intent to use the presently proposed tax bill in a manner that would make one of these problems dramatically worse.

According to news reports, Republicans intend to use their tax cut plan to remove incentives for electrical vehicle ownership by the end of 2017. Presently, buyers of all-electric vehicles enjoy a $7,500 tax credit. An incentive that helps the U.S. clean up its air and reduce the kinds of greenhouse gas emissions that fuel sea level rise, more powerful storms, and worsening droughts, deluges, and wildfires.

(In the U.S., more than 200,000 people die every year as a result of outdoor air pollution to which vehicle transportation is now the primary contributor resulting in 53,000 such deaths per year. That’s more deaths than from vehicle accidents. Moreover, air pollution impacts like asthma, stroke, heart attacks, and reduced lung function are far more widespread. Image source: EPA.)

Though such a policy might not be much of a surprise coming from the party of a Rick Perry, who today falsely claimed that fossil fuel burning prevented sexual assault against women, climate change denier Inhoffe, and tilting at windmills Donald Trump, it would have wide-ranging negative impacts for every American. Impacts like bad air quality which is a health risk for everyone, worsening climate change which is now causing many Americans to lose their homes or be forcibly displaced, and loss of economic advantage coming from new jobs and new industry.

Presently, U.S. automakers hold a global edge in high quality electrical vehicle adoption due to this and other related policy supports. Top EV automakers like Tesla, GM and Ford who produce renowned vehicles like the Model S, Model 3, and the Chevy Bolt. But, apparently, it looks like Republicans are now using tax policy as a means to legislate an attack on this innovation, which result in reduced fossil fuel demand, more energy independence for the U.S., and far less in the way of harmful particulate and greenhouse gas emissions.

(Tesla stock reacts negatively to news that Republicans are adding a provision to remove electrical vehicle incentives to their tax bill. Image source: Google Finance.)

Tesla bears, who have been rabidly consuming and perpetuating bad news (a good portion of it exaggerated or invented) about the leading U.S. electrical vehicle manufacturer, went nuts over the Republican announcement today. Tesla share prices dropped from around $320 to $296 following the move. More than a bit of this investor flight appears to be irrational. Ironically, Tesla is less exposed to risk from removal of this tax cut than automakers like GM due to the fact that it is already approaching the 200,000 EV limit under the tax credit. After this point, tax incentives for EVs from individual automakers drop off. And Tesla has already sold 250,000 vehicles globally with more than 150,000 of those sales coming from the U.S.

Republicans have once again proven that they are the anti-renewable energy, pro harmful impacts from climate change party. They have also once again proven that their capacity to use tax policy to greatly increase a variety of bad effects — ranging from worsening inequality in the U.S., to undercutting innovation and American technological leadership, to fighting directly against the very solutions and mitigations for a rapidly worsening climate situation.

RELATED STATEMENTS AND INFORMATION:

Links:

Republican Tax Plan Kills Electrical Vehicle Credit

EPA

Air Pollution Causes 200,000 Early Deaths in the U.S. Each Year

Rich Perry Says Fossil Fuels Will Prevent Sexual Assault in Africa (Hint: FALSE)

Hat tip to Suzanne

This post is dedicated to DT Lange

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