In a tweet published on Monday, President Biden (or whoever runs his account) posted a video of a smiling president promoting an electric vehicle tax credit he's bestowed upon the country. He boasts that the "great American road trip" is going to become "fully electrified" on his watch.
If you don't think too hard about this image, or know very little about any of the related issues, this might be effective political messaging:
On my watch, the great American road trip is going to be fully electrified.— President Biden (@POTUS) January 30, 2023
And now, through a tax credit, you can get up to $7,500 on a new electric vehicle. pic.twitter.com/n3iZ9etL4A
Lurking just below the bumper sticker slogans, however, are a few problems. First, we will just set aside the costs and challenges related to moving from gas-fueled automobiles to electricity-based ones. Electricity isn't magic, isn't free, and sometimes faces shortages. Second, the tax credit he touts offers up to $7,500 in assistance to buy the type of car he's sitting in. That car is a new Hummer EV. It costs more than $110,000, with the 'cheaper' version clocking in at roughly $80,000. After the tax credit, the first edition version of this car would still cost six figures to purchase. How many American families can afford that? This is the vehicle the White House chose to showcase. It's out of touch. Lucky for them, rich people who can afford such a massive expense can grab that tax credit and use it to their advantage. How is the credit paid for, pray tell?
Good reminder that President Biden is funding this tax credit - which can go to wealthy families - by super-sizing the IRS to increase taxes and tax audits on the lowest earners in the workforce. https://t.co/Mx2LKkYn2i— Matt Whitlock (@mattdizwhitlock) January 30, 2023
Congratulations on the "Inflation Reduction Act," middle class and working class families. Now you, too, can contend with a doubled IRS in order to furnish rich people with generous tax credits to buy electric Hummers you'll never be able to afford. For the planet, of course. And yes, it's absolutely true that the Democrats' new law creating this scheme is largely 'paid for' by beefing up the IRS on a massive scale, including 87,000 new employees, to chase down cash -- disproportionately from the least wealthy Americans. That's what the data shows. Given the opportunity to codify Biden's bogus campaign pledge and shield anyone making less than $400,000 annually from new audits under the expanded regime, every Senate Democrat voted that option down. The IRS is a lot bigger and stronger, it's coming for the non-rich, and the expected revenues will partially flow to wealthy people getting a sweet taxpayer-funded discount on luxury electric vehicles practically nobody else has the resources to buy. A 'win-win,' according to the Democrats. Oh, and then there's this:
Remember, you're paying for this progress. Which is why the IRS will be rummaging around much smaller transactions than they used to, also thanks to Democrat-passed legislation, overwhelmingly impacting working Americans. This special deal was only made possible by Joe Manchin, along with unanimous Senate Democrats, several of whom will have a chance to hear from voters in 2024.