“The U.S. Senate on Sunday passed a sweeping $430 billion bill… aimed at reducing carbon emissions and shifting consumers to green energy, while cutting prescription drug costs for the elderly and tightening enforcement on taxes for corporations and the wealthy.” Reuters
Here’s our previous coverage of the Manchin-Schumer deal. The Flip Side
The left supports the bill, arguing that additional spending on green energy and IRS enforcement will be beneficial.
A libertarian's take
“The bill apportions $740 billion for a grab bag of Democratic spending priorities in the name of combating inflation. One item on the list: tax credits for purchasing electric vehicles (EVs). There's a problem: No cars exist that qualify for the credits…
“Starting in 2024, an EV that qualifies for the full rebate amount must source at least 40 percent of its battery's components—including minerals such as lithium, cobalt, manganese, and graphite—from either the U.S. or a country with which the U.S. has a trade agreement. Also starting in 2024, no minerals can be sourced from a ‘foreign entity of concern,’ such as China…
“But 60–80 percent of EV batteries' mineral ingredients are controlled by China. That country currently produces 76 percent of the world's lithium-ion batteries, while the U.S. produces only 8 percent. Despite ambitious plans to scale up, the U.S. and Europe together will likely account for only about a quarter of total global production of EV component minerals by 2030… Sen. Debbie Stabenow (D–Mich.), whose state includes the U.S. auto capital of Detroit, called it ‘a very cumbersome, unworkable credit once the full restrictions set in.’”
Joe Lancaster, Reason