Democrats are about to ruin their plan for electric cars


As Democrats frantically negotiate the shape of their social spending package with multiple deadlines and economic mayhem looming, they are reportedly considering "means-testing" some of their new programs. Progressives have long derided means-testing – phasing out benefits above a certain income threshold – as a practice that undermines social solidarity and forces the government to create expensive and confusing bureaucratic machinery. It also just so happens that the most popular and enduring programs operated by the federal government (Medicare and Social Security) aren't phased out above any income level.
Nevertheless, congressional Democrats are talking about applying means-testing to a critical climate idea: tax breaks for the purchase of electric vehicles (EVs). Today, most electric vehicles are prohibitively expensive, and consumers can only claw that up-front money back over time with existing tax credits, and reduced fuel and maintenance costs. The lack of infrastructure for charging is an additional deterrent and helps explain why just 2 percent of new vehicle sales in the U.S. are electric.
To address these problems, House Democrats proposed a tax break of up to $12,500, deducted at the point of purchase, rather than forcing buyers to wait for a tax rebate as they must with the existing EV program. But it looks like moderates hoping to decrease the price tag of the reconciliation package are set to gut this provision by imposing more stringent income thresholds for EV subsidies, lowering the income cutoff from $400,000 to $100,000.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The moderate plan fundamentally prioritizes fairness over the underlying policy aim. The wealthy, of course, don't need government support for their electric vehicle purchases. Yet the other, far more important goal is a transition away from gas-powered vehicles by whatever means are necessary. And means-testing is anathema to that project, because all but the wealthiest Americans are sensitive to prices. Yes, giving rich people a tax break to climb into a $90,000 Tesla feels unfair, but if it helps smooth the way to a world free of internal combustion engines, it is well worth it.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
David Faris is an associate professor of political science at Roosevelt University and the author of It's Time to Fight Dirty: How Democrats Can Build a Lasting Majority in American Politics. He is a frequent contributor to Informed Comment, and his work has appeared in the Chicago Sun-Times, The Christian Science Monitor, and Indy Week.
-
'Trucking is a dangerous business'
Instant Opinion Opinion, comment and editorials of the day
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Higher toy prices from Trump's tariffs have arrived
In the Spotlight Three out of four toy products in the US come from China
-
Zohran Mamdani: the young progressive likely to be New York City's next mayor
In The Spotlight The policies and experience that led to his meteoric rise
-
'More must be done'
Instant Opinion Opinion, comment and editorials of the day
-
The last words and final moments of 40 presidents
The Explainer Some are eloquent quotes worthy of the holders of the highest office in the nation, and others... aren't
-
Some mainstream Democrats struggle with Zohran Mamdani's surprise win
TALKING POINT To embrace or not embrace? A party in transition grapples with a rising star ready to buck political norms and energize a new generation.
-
'Alligator Alcatraz will be a blight on the Everglades'
Instant Opinion Opinion, comment and editorials of the day
-
How Zohran Mamdani's NYC mayoral run will change the Democratic Party
Talking Points The candidate poses a challenge to the party's 'dinosaur wing'
-
'Big Oil does not accept responsibility'
Instant Opinion Opinion, comment and editorials of the day
-
DNC rocked by high-profile departures as future is in question
IN THE SPOTLIGHT Generational shifts, ambiguous priorities, and the intensifying dangers of the Trump administration have pushed the organization into uncertain territory