Representative Mike Kelly Introduces Bill to End Electric Vehicle Tax Subsidy

Jan 4, 2012

FOR IMMEDIATE RELEASE

Contact: Julia Thornton

January 4, 2012

202-525-0182

Representative Mike Kelly Introduces Bill to End Electric Vehicle Tax Subsidy

Washington, D.C. — Representative Mike Kelly (PA-03) issued the following statement on H.R. 3768, legislation he authored that would repeal the $7,500 tax credit for plug-in electric drive vehicles:

“America’s $15 trillion debt is a serious threat to our economic and national security. It is one of the reasons why our credit rating was downgraded for the first time in our nation’s history, and it’s a byproduct of years of runaway Washington spending, including the past three record-setting years of trillion-dollar deficits.

“I introduced legislation to repeal the $7,500 electric vehicle tax credit because, quite simply, our nation can no longer afford to subsidize vehicles that not only lack market demand, but whose safety has been called into question. In addition to the Chevy Volt, which is currently under federal investigation by the National Highway Traffic Safety Administration after the batteries of three crash-tested Volts caught on fire, the safety of Fisker’s electric vehicle has been recently scrutinized as well

“The bottom line is, while our nation borrows 42 cents on every dollar, taxpayers are paying for an electric vehicle tax credit that has cost tens of millions of dollars, and that largely benefits upper-income Americans. According to General Motors Chairman and CEO Dan Akerson, the average income of a Volt owner is $170,000 a year.

“If we are going to right the ship and save the American economy from sinking further into debt, we need to look at how we are spending hard-earned taxpayer dollars. If something doesn’t pass the smell test, or smoke test in this case, then it’s got to go. During these tough economic times, it's critical that we measure twice and cut once. After measuring the cost benefits of this subsidy several times over, it would be a waste of taxpayer dollars to continue this tax credit, and I will work to ensure that it's repealed.”

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