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“Inflation Reduction Act” EV Subsidy Price Tag Quadruples

Liberals rely on government subsidies to get people to buy products that would otherwise flop in free and open markets. A perfect example is electric vehicles and their component parts.

Most recently, President Biden’s pork-filled spending package included tax credits to encourage companies to manufacture EV batteries in the United States.

Axios reports that these credits reduce production costs of batteries by a third – but that the lost revenue from “those tax credits may be four times higher than Congress’ budget experts anticipated.”

Axios headlined this soaking of taxpayers as a great success before revising it to more neutral language:

The Congressional Budget Office projected the tax revenues lost to these credit loopholes at $30,6 billion over 10 years. Others put the figure at $136 billion over the same period – and probably more as it fails to include Tesla’s recently announced multi-billion dollar investment.

Imagine how fast the economy would grow if we got rid of these special interest write-offs in the tax code and just went with the 17% Forbes flat tax. But then how could Congress buy and sell tax favors?

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