Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ The UAW wants the EV tax incentive to count only for American cars

The UAW wants the EV tax incentive to count only for American cars

Illustration for an article titled UAW wants EV tax breaks to count for U.S. cars only

Photo: Somodevila chip (Getty Images)

If you buy an electric vehicle—all kinds electric vehicle – in the US you are currently entitled to a $ 7,500 tax credit. But United Auto Workers (UAW) wants to change that. It wants that incentive to only meet the requirements for electric vehicles assembled in the United States

The union’s frustration is not unfounded and is, in fact, rooted in it General Motors decision to re-equip his Ramos Arizpe production facility in Mexico for the production of electric vehicles. And it will cost about $ 1 billion to make that happen. Yesterday, the UAW called it a slap because there was so much pressure from the Biden administration to switch from gas to electricity. The hope was that increased demand for electric vehicles would lead to more jobs in the United States. But that doesn’t seem to be the case.

GM, for its part, said the UAW should be content with adding 9,000 through new plants for the production of electric vehicles or battery cells in Michigan, Ohio and Tennessee. But jobs are jobs, and many people are increasingly despairing of anything that would guarantee job creation in the United States, especially after the massive cuts in COVID-19.

So, UAW Vice President Terry Dites stated, “The UAW is working with the Biden and Congress administrations to ensure that final legislation to expand subsidies for electric vehicles makes it clear that these investments subsidize the jobs of American workers. “

In some ways this right seems to be the goal of the Biden administration. Earlier, President Joe Biden called for $ 174 billion to increase production, sales and infrastructure of electric vehicles in the United States. He argues that “there is no reason why American workers cannot lead the world in the production of electric vehicles and batteries.” And he offered an additional $ 100 billion in new consumer discounts.

At the same time, however, there is a huge conflict of interest. Yes, it would be ideal in this process to go for electricity and strengthen American jobs, but the climate is quite terrible. Even if the world manages to reduce its carbon emissions to meet acceptable standards, we will still face widespread changes to Earth it can cause the chaos of life as we know it. If the ultimate goal is to attract more people to greener cars as quickly as possible, then reducing the incentives for some electric cars is probably not a good idea.

President Biden has not yet responded to a UAW statement on limiting federal tax incentives.

Source link