Rep. Smith, Sen. Barrasso Push to Eliminate Wasteful Electric Vehicle Tax Subsidy
Legislation Would Save Billions, Help Invest in Rural Infrastructure
WASHINGTON – This week Congressman Jason Smith (MO-08) and Senator John Barrasso (R-WY) introduced the Fairness for Every Driver Act to save billions of taxpayer dollars by eliminating the tax credit for high-end electric vehicles. The legislation would help fund new infrastructure projects by requiring users of alternative fuel vehicles to contribute to improving the nation’s roads and bridges.
Currently the electric vehicle tax credit rewards buyers of electric vehicles with up to $7,500 in taxpayer-funded subsidies. Unfortunately, the vast majority of the credits have been rewarded to people who don’t need government assistance to purchase vehicles, as 80 percent of the subsidies are given to people making more than $100,000 per year. Eliminating the electric vehicle tax credit is estimated to save taxpayers $20 billion over the next ten years.
“Missouri’s families and farmers shouldn’t be footing the bill for others to drive high-end electric vehicles,” said Congressman Smith. “The Electric Vehicle Tax Credit has benefited the wealthy at the expense of everyday Americans just trying to get by. It’s time to end this wasteful subsidy and help rebuild our nation’s infrastructure by ensuring every driver contributes to improving the roads we all use.”
“It’s time to end the electric vehicle tax credit,” said Senator Barrasso. “The Fairness for Every Driver Act will save taxpayers billions of dollars and help keep our roads safe. The legislation levels the playing field for all cars across America. Gas, electric, and alternative fuel vehicles all use the same roads and put the same amount of wear and tear on those roads. Every driver should contribute to maintain America’s highways.”
Under current law, users of alternative fuel vehicles do not contribute funds to improving the roads and bridges all drivers use.
“Investing in infrastructure will improve the quality of life for everyday Americans,” said Cyndra Lorey, Executive Director of the Rolla Regional Economic Council. “Our nation’s roads and bridges are in need of repair, and rural communities in Missouri especially stand to benefit from higher quality infrastructure as their areas will become more attractive for businesses and new investments. I thank Congressman Smith for proposing new ideas to increase the standard of living in rural America and bring our infrastructure into the 21st century.”
You can find the text of the Fairness for Every Driver Act here.