Biden's $2 Trillion 'Infrastructure' Plan Includes $175 Billion in Subsidies for Electric Cars, Buses

Michael W. Chapman | April 1, 2021 | 10:42am EDT
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Democratic President Joe Biden.  (Getty Images)
Democratic President Joe Biden. (Getty Images)

(CNS News) -- President Joe Biden's $2 trillion infrastructure plan, which he announced on Wednesday, includes $174 billion in myriad subsidies, grants, and tax incentives for electric vehicles (EVs), electric charging stations, and replacement of the entire federal fleet of cars and trucks, including all Postal Service vehicles.

Currently, electric vehicles make up about 2% of the U.S. car market, according to the U.S. Energy Department. There are about 645,000 vehicles in the federal fleet. 

(Getty Images)
(Getty Images)

"The American Jobs Plan will lead to transformational progress in our effort to tackle climate change with American jobs and American ingenuity," said Biden on Mar. 31. "Protect our community from billions of dollars of damage from historic super-storms, floods, wildfires, droughts year after year, by making our infrastructure more secure and resilient."

"And increasing incredible opportunities for American workers and American farmers in a clean energy future," he said. "Skilled workers, like one we just heard from, building a nationwide network of 500,000 charging stations. Creating good paying jobs by leading in the world in the manufacturing and export of clean electric cars and trucks."

(Getty Images)
(Getty Images)

In the fact sheet on the proposal, "The American Jobs Plan," it states, "Create good jobs electrifying vehicles. U.S. market share of plug-in electric vehicle (EV) sales is only one-third the size of the Chinese EV market. The President believes that must change."

"He is proposing a $174 billion investment to win the EV market," reads the fact sheet. "His plan will enable automakers to spur domestic supply chains from raw materials to parts, retool factories to compete globally, and support American workers to make batteries and EVs."

It also calls for "consumers' point of sale rebates and tax incentives to buy American-made EVs, while ensuring that these vehicles are affordable for all families and manufactured by workers with good jobs."

(Getty Images)
(Getty Images)

It will further "establish grant and incentive programs for state and local governments and the private sector to build a national network of 500,000 EV chargers by 2030."

Biden wants to "replace 50,000 diesel transit vehicles and electrify at least 20 percent of our yellow school bus fleet through a new Clean Buses for Kids Program at the Environmental Protection Agency."

"These investments will set us on a path to 100 percent clean buses, while ensuring that the American workforce is trained to operate and maintain this 21st century infrastructure," reads the plan.  "Finally, it will utilize the vast tools of federal procurement to electrify the federal fleet, including the United States Postal Service."

(Getty Images)
(Getty Images)

According to the Washington Post, "there are some 645,000 vehicles in the federal fleet. They include roughly 200,000 passenger vehicles, 78,517 heavy-duty trucks, 47,369 vans, 847 ambulances and three limousines."

Commenting on Biden's overall plan, former President Trump said in a statement, "Under Biden’s plan, if you create jobs in America, and hire American workers, you will pay MORE in taxes—but if you close down your factories in Ohio and Michigan, fire U.S. workers, and move all your production to Beijing and Shanghai, you will pay LESS. It is the exact OPPOSITE of putting America First—it is putting America LAST!"

"This tax hike is a classic globalist betrayal by Joe Biden and his friends: the lobbyists will win, the special interests will win, China will win, the Washington politicians and government bureaucrats will win—but hardworking American families will lose," said Trump. 

"Joe Biden’s cruel and heartless attack on the American Dream must never be allowed to become Federal law," Trump added.  "Just like our southern border went from best to worst, and is now in shambles, our economy will be destroyed!”

(Getty Images)
(Getty Images)

Biden's $2 trillion infrastructure plan apparently will be paid for "by $2 trillion in tax increases on U.S. corporations spread out over 15 years," reported the Tax Foundation. "[T]he premise is that the economic benefits of government infrastructure spending outweigh the economic harm from an increase in corporate taxes. The Biden administration has yet to make that case, and economic studies—including those by the Congressional Budget Office (CBO)—indicate that the benefits of the Biden infrastructure plan won’t outweigh the cost to the economy of the tax increases."

"Since CBO found that $1 of government infrastructure spending nets just $0.67 of actual investment, Biden’s $2 trillion worth of spending will likely net roughly $1.3 trillion in actual investment, one-third less than the headline amount," said Tax Foundation President Scott Hodge.

"[T]he economy would be better off if the $2 trillion in taxes that President Biden wants to finance his package were left in the hands of the private sector," said Hodge.

"If Biden wants to maximize the economic benefits of his $2 trillion in new infrastructure spending, he should cut $2 trillion in other (wasteful) government spending to pay for it," Hodge concluded. 

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