Press Releases

WASHINGTON, DC – During the Ways and Means Committee markup of the Democrats’ $3.5 trillion spending and tax increase package, Congressman Jason Smith offered the No Corporate Welfare Amendment. This provision would have prevented any big business with an annual income over $5 million from receiving a tax credit on their commercial electric vehicle (EV).

“After years of hearing Washington Democrats boldly proclaim that we need to eliminate loopholes in the tax code, and that the rich and corporations need to ‘pay their fair share’ Washington Democrats are proposing the exact opposite by forcing American taxpayers to shoulder the cost of brand new electric vehicle fleets for companies like Amazon,” said Rep. Jason Smith. “My amendment would ensure that working class families are not paying for this corporate welfare by preventing businesses with incomes over $5 million from taking this credit.”

“Frankly, this tax credit is one of the most unnecessary elements of the tax code. But my amendment would have at least ensured a commonsense protection of taxpayer dollars. Why would anyone support subsidizing big business in this manner?” he added.

Congressman Jason Smith previously introduced the Eliminate Lavish Incentives to Electric Vehicles (ELITE) Act to completely eliminate the electric vehicle tax credit.

The Manhattan Institute estimates that ending the current electric vehicle tax credit would save roughly twenty billion dollars in taxpayer dollars over the next decade. According to a Congressional Research Service report, 78% of EV credits are claimed by filers with an adjusted gross income of $100,000 or more, and those filers receive an even higher proportion (83%) of the amount of credits claimed.

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