Biden's Plan to Force All Americans to Buy Electric Cars
But critics say itll: do deadly squat for inflation today were looking at what the bills about and how itll impact you, the car industry and climate change heres the good bad and the ugly, in a nutshell, with this new bill, if you buy a brand new electric Vehicle next year, you might be able to get a 7 500 tax credit at the point of purchase, and this credit would apply equally to electric vehicles from tesla and gm, whose cars currently havent been eligible for existing ev credits. But not everyone is eligible. For this credit, if youre a couple who earns less than 300 000 a year or a single person who earns less than 150 000, then you qualify. This new arrangement also offers a tax credit if youre buying a used ev. The credit for used evs is less but im sure no one will reject the four thousand dollar carrot. The credit will be applicable for new and used dvds people by next year and onward. The point is to incentivize americans to buy evs rather than traditional combustion engine cars. The bill also authorizes investments into ev infrastructure, which is sorely needed to support more evs on the road, no mention on whether its going to build new power plants. Of course. Now, if you install solar panels on your home, you could be eligible for a whopping 30 percent credit through 2032.. After 2033. The credit would drop to 26. If you install efficient heat pumps to control your climate, you can be eligible for rebates all the way up to 8 000.
If you install electric heat pump water heaters, you could get 1750 in rebates. If you improve your electric panels, wiring and home insulation thats up to ninety one hundred dollars in rebates, if you install an electric induction, cooktop thats up to eight hundred and forty dollars in rebates. According to one study, consumers could save as much as 1840 on their annual energy bill with this program, all in all the governments, budgeting 80 billion dollars to cover these rebates and credits now lets talk about the irs everyones favorite topic with a new bill over the Next decade, the government will channel 80 billion dollars to the irs. This is to help the irs, do more audits and collect the estimated 600 billion dollars in taxes. They go unpaid every single year. So now, if you think about it, some of the taxes you pay to the government will go back to the tax agency so that they can audit you even more pretty much. The government is investing in itself. If youre honest with your taxes, you may not need to worry too much. Actually, most of the billions of unpaid taxes are owed by the rich who under report their income. The bill will rev up the irss capability to go after the rich tax cheaters. The irs doesnt expect to recuperate the entire 600 billion of unpaid taxes, but theyre hopeful to recapture at least 400 billion heres. The thing between 2010 and 2020. The irss budget was caught by 20.
Not many people know that former irs commissioner, charles rosadi and current treasury official tasha sarin estimated that the irs could raise 1.4 trillion in additional tax revenue if they had the funding to do so. Interestingly, many republicans believe that giving the irs is 80 billion dollars represents a political vulnerability for the administration. If more americans face scrutiny from tax collectors and audits, i think its a fancy way of saying the government can lose the popular vote of the american people. That way, by the way, speaking of taxes lets talk about the biggest tax hike in the plan. It will apply to all u.s corporations that earn more than a billion dollars in annual profits under the current law. U.S corporations must pay a 21 tax rate, but there are literally dozens of fortune 500 companies who dont pay a single penny in federal income tax thats because of all the deductions they claim for research and development and other credits. But this new bill aimed to limit that option corporations can still claim tax credits, though, and corporations will be allowed to keep deducting at least some investment expenses. With this bill, democrats agreed to limit the extent of the corporate minimum tax. Instead, there will be a new one percent tax from corporations purchase shares of their own stock. This is known as stock buyback, but now you have to understand that democrats have never been the biggest fans of stock buybacks, to say the least thats, because when a corporation buys its own stock, it drives up its own value and that basically just makes the rich Even richer liberal tax experts have also stated that large corporations should spend their money on improving workers payer investing in new research and developments, rather than buying their own stocks.
As a case in point after the 2017 gop tax law, 10 drug companies spent 75 billion on buying their own stock, but only 72 billion on research and development. So you can see where they can be misused. But lets jump back to you for you and me as an average american. The bill will impact our health care. The plan allows medicare to negotiate drug prices for the first time ever and itll prevent future administrations. From refusing to do so. Democrats have been pledging forever to lower the cost of medicine, especially for seniors on the surface. This seems to be a good thing, but heres the catch. The government plans to negotiate the price of 10 drugs in 2026. thats four years from now, and even then were talking only about 10 drugs from there. They plan to gradually scale up to 20 drug pressure negotiations by 2029, im sure im, not the only one wondering why it takes so many years to negotiate just a small handful of drugs right now. It isnt exactly clear how many americans, who already have medicare coverage, will see lower out of pocket costs. Really, it just depends on how much drugs end up dropping price and which drugs will get the privilege of getting their prices negotiated, but those arent, the only policies on the bill aimed at lowering exorbitant drug prices. For example, the bill aims to cap the cost of drugs at two thousand dollars per year for seniors under medicare.
It aims to provide free vaccines for seniors and to force drug companies to pay a rebate if they ever increase their prices faster than the rate of inflation. What, if you have type 1 diabetes? Well, you need insulin to stay alive and if you have type 2 diabetes, you need insulin to manage your blood sugar levels, but anyone with diabetes knows that insulin isnt cheap. So this new bill plans to impose a 35 monthly cap on the cost of insulin for patients. But the thing is, it applies to those who are enrolled. In medicare democrats tried to extend the same cap to people with private insurance, but republicans denied this on the senate floor why they said it didnt comply with the budget rules. So, as we can see, there are a lot of good intentions, but this is a classic example of how lack of agreement and budget limitations are the two limiting factors on what the government can achieve. Have you ever heard of black lung disease? Most of us probably havent, but right now, roughly 25 000 coal miners suffer from this disease, and that includes those who live in joe manchins coal, rich state of west virginia. The spill aims to permanently extend funding for the black lung disability trust fund last year. The version of the bill that passed the house only provided a four year extension of a tax on coal sales that would pay for the trust fund. But now the extension will last forever.
Last year, democrats pandemic aid program, boosted, financial, help for low income americans and it extended subsidies to middle income earners too. But this aid was sapped to expire at the end of the year, meaning that 13 million americans would be left with health premiums. That would increase, but now, with the new bill, these tax credits will be extended for three more years from 2023 until 2025.. This bill has its supporters and it has its critics. Some critics say the bill. Doesnt provide health insurance assistance for new mothers with low incomes. They also criticize it for not helping some of the nations most vulnerable children. For example, earlier versions of the bill proposed to permanently fund the insurance coverage, low income, children and also expand medicaid benefits for the first year of birth in every u.s state. But the current version, unfortunately doesnt include that or take bernie sanders as another critic. For example, he dubbed this bill. The so called inflation reduction act because he believes itll have very minimal effect on inflation. Some critics say the bill will likely increase near term inflation. They think itll also reduce household incomes and brace yourself cause long term deficits that will actually fuel long term inflation. The bills impact on climate change is also debatable. The media is touting that the inflation reduction act will impact climate change for sure. The senate made the most significant investment renewable energy in all of american history and ill get more into that in a few minutes.
But first lets talk about the controversy thats strewn between the 725 pages, which many say is counterintuitive, so the bill also includes major giveaways to the fossil fuel industry. Thats the other side of the story that they arent even talking about vectors buried in the 725 pages of the inflation reduction act, is a provision thats actually a great deal from the natural gas and oil industry. Basically, the new bill addresses oil and gas leasing in the gulf of mexico and off the coast of alaska. In those areas, industrial groups have been pushing for a major expansion of oil production, and the bill gives the oil lobbyist just what they wanted. Thats, because joe manchin also views drilling in those areas is very important to our countrys domestic energy independence. This bill would make it even easier for developers to override environmental objections when they build natural gas, export facilities, pipelines and other energy infrastructure. In other words, the permitting bill would green light. The fast tracking of more oil and gas permits. Needless to say, critics call this a climate suicide pact, thats self, defeating the bill requires the interior department to offer at least 2 million acres of public lands and 60 million acres of offshore waters for oil and gas leasing each year for a decade. Actually, this is a prerequisite for installing any new, solar or wind energy. If the department fails to offer these minimum amounts for leasing, no right of ways can be granted for any utility scale, renewable energy project on public lands or waters.
Anyway, the bill in general has been long awaited for it, but now its been so deeply compromised because its making necessary investments in clean energy but at the same time, its matching those very policies with others that will hurt communities and the environment its as if the Government is contradicting itself not for the first time. If you ask me, critics say the bill falls short of being forward thinking because it fails to address the root cause of the climate change, which is the extraction and burning of fossil fuels. Lets talk about the green side of things. The inflation reduction act also includes new and extended credits to promote wind, solar, hydro power and other sources of renewable energy. Just think private firms and publicly owned utilities can get major tax subsidies if they produce renewable energy or manufacture specific parts that are essential to renewable projects. The purpose of this is to encourage companies to produce systems like wind turbines solar panels and to make it cheaper to build facilities that produce new green energy. Instead of those that run on fossil fuels, the government is allocating 260 billion dollars of tax credits to this portion of the bill, then theres the new methane emissions reduction program. Did you know that methane is the most abundant greenhouse gas, its practically everywhere, and it traps a lot more heat in the atmosphere than carbon dioxide? Does the new program is rewarding oil and gas companies that slash their emissions of methane and those that dont will be penalized? The program was created by thomas r, carper hes, a senate environment and public works chair now.
Originally, this program would have been given 775 million dollars up front to oil and gas companies to slash their methane emissions, but now that amounts had pretty much doubled right now, its 1.5 billion dollars, then weve got green banks. Basically, this is a clean energy and sustainability. Accelerator 27 billion dollar green banks would leverage private and public funds so that theres more investment, clean energy infrastructure and technology. Now some states have already established green banks in those states. Public money has been used to leverage six to 20 times more money in private investment and clean energy.