As they continue to work on their tax plan, members of Congress would be wise to remove the tax credit for electric cars.
This distortive credit rigs the market and allows government to pick winners and losers. In this case, the winners are wealthier Americans who are getting tax credits for purchasing expensive electric cars, like Teslas, that the average American cannot afford.
The Wall Street Journal recently published an editorial, in which the editorial board argued that the tax credit should be scrapped as part of the tax reform plan being pushed in Congress
“The credit is essentially an indulgence for affluent Americans who may have been buying $70,000 Teslas. But even Tesla CEO Elon Musk now says he’d eliminate the credit…” the editorial points out.
This type of handout distorts the market and should be tossed out.