The U.S. House electric vehicle tax plan Has Become Controversial


The competition in the American automobile market has always been cutthroat. With all automobile companies trying to outdo each other in terms of design and functionality it has seriously become a matter of personal preference for many rather than the features. They all offer a range of unique features that you might not find in the other cars. However, there are also times when you see these companies join hands to fight a common foe and right now that foe is the US House Electric Vehicle Tax Plan.

What Is the US House Electric Vehicle Tax Plan?

A proposal by the US House of Representatives, the tax plan which is supported by the Democratic Party wants to convert important elements of President Obama’s electric vehicle policies into law. This would mean that people can now get up to $12500 maximum tax credit limit instead of $7500 for the cars manufactured by the unionized manufactures. The current US government is working on a policy to convert 50% of cars from oil to Electric in the United States by 2030. This is another step towards a more sustainable world. Whether the bill passes or not it is definitely going to be more controversial after the vote than it is now.

 The Electric Vehicle Market in USA

The US Federal government has been giving subsidies on electric vehicles ever since 2010. So far it has had good results. These are significant numbers for a market that still accounts for a small proportion of all automobile sales in the country. Bills like this may not be good for the electric vehicle market in the US as it is shown to be. It may actually have adverse effects on the market and it may make it difficult for people to buy electric cars.

Who Is Opposing the Plan?

Heavyweights like Honda and Toyota have both opposed the bill citing the reason that it would be unfair to the American car manufacturers who are not part of the union. Being part of the union is the choice of the car manufacturer so whether they decide to join the union or not, they should be treated equally by the government. The government should have proper policies in place that help all automobile manufacturers and not just a selected few.

Are There Companies Who Want The Bill To Pass?

Car manufacturers like Ford, Stellantis and GM motors and others who are represented by the United Auto Workers union are actually in favor of the bill because the bill favors them financially. This bill has seriously divided the automobile industry into two halves. They make the case that the tax provisions would be great for the electric vehicle sector and will definitely be good for the employees. However, the fact is that this bill will have a different effect on different automobile manufactures. Almost all car manufacturers stand to gain from it however some of those automobile manufactures do have an unfair advantage over the others because of this bill.