politics
January 26, 2026
SEN DEB FISCHER: The EV scam that stuck taxpayers with the bill for elite perks
Paul Gigot hosts a 'Journal Editorial Report' panel discussing the Global Electric Vehicle retreat, Ford's decision to cut back on EV production and Europe backtracking its decision to ban gas-powered cars by 2035.
TL;DR
- The Inflation Reduction Act's EV tax credits are criticized for not reducing inflation and disproportionately benefiting the wealthy.
- A National Bureau of Economic Research study found that 70% of EV tax credit recipients would have purchased an electric car regardless.
- Before the act, the top 5% of earners claimed half of all EV tax credit benefits, while the bottom 60% received less than 3%.
- The income cap for the credits was set at $300,000 for joint filers, considered too high to be middle class.
- Research suggests the environmental benefits are overstated, with credits displacing sales of other efficient vehicles like hybrids.
- Repealing these tax credits is estimated to save taxpayers $190 billion over the next decade.
- A proposal called the Fair SHARE Act aims to require EVs to contribute to the Highway Trust Fund, which is projected to become insolvent by 2028.
- EVs do not contribute to the Highway Trust Fund through the federal gas tax, despite their weight causing more road wear.