Manchin opposes $4,500 'not-American' federal grant for union-made electric vehicles: Throws Biden's $1.7T Build Back Better agenda into doubt with just a week until Dems want it passed
West Virginia Sen. Joe Manchin has raised more concerns about President Joe Biden's 'Build Back Better' plan – this time dissing a program in House legislation to provide $4,500 grants to electric vehicles made in union shops in the U.S.
Manchin made the comments at an event in West Virginia with execs from Toyota Motor North America's, which is investing in a new components plant in his state, with $240 million planned in his state.
Manchin, who has previously raised concerns about the size of the package, the timeline for doing it, and its potential impacts on the deficit and inflation, acknowledged going back and forth with fellow Democrat Michigan Sen. Debbie Stabenow.
Sen. Joe Manchin bashed a provision to provide in the House version of 'Build Back Better' legislation to provide a $4,500 grant for union-made electric vehicles made here
The tax credit is on top of other tax credits that go across the industry.
'When I heard about this, what they were putting in the bill, I went right to the sponsor,' he said of Stabenow, Automotive News reported, 'and I said, 'This is wrong. This can't happen.'
'It's not who we are as a country. It's not how we built this country, and the product should speak for itself,' he told the publication in an interview. 'We shouldn't use everyone's tax dollars to pick winners and losers. If you're a capitalist economy that we are in society then you let the product speak for itself, and hopefully, we'll get that, that'll be corrected.'
He also called it 'wrong' and 'not American.'
Toyota and other non-union U.S. manufacturers have blasted the provision as a benefit to Detroit, where it could give a market edge to General Motors and Ford.
President Biden has heralded $550 billion in provisions in 'Build Back Better' meant to help the environment and combat climate change
Manchin said he raised his concerns with Democratic Sen. Debbie Stabenow of Michigan
The bonus credit applies to autos made in the U.S. by union labor, with $500 going for U.S.-made batteries.
The $4,500 tax credit it included in a House bill encompassing Biden's $1.75 trillion plan, which has yet to come up for a vote. There is also a $7,500 credit for consumers who purchase EVs, which would benefit a range of automakers.
The House bill could be a boon for the Chevy Bolt, but could harm Tesla, who's largest shareholder Elon Musk has been bashing the administration's tax proposals.
Environmentalists have long relied on incentives and tax policy to try to encourage greener choices like solar panels, electric vehicles, and energy efficient appliances.
Manchin may have the leverage to change it. President Biden's plan cannot make it through the Senate without support from all 50 Democrats under budget reconciliation procedures.
He has also indicated he is in no hurry to act on the plan, although House democrats negotiated with centrist holdouts who agreed to support the framework the week of Nov. 15th, when Speaker Nancy Pelosi plans to bring it up.
No comments