Biden Snookers Joe Manchin Again

  

Category:  Op/Ed

Via:  vic-eldred  •  4 weeks ago  •  23 comments

By:   The Editorial Board (WSJ)

Biden Snookers Joe Manchin Again
Treasury's guidance on EV subsidies ignores the Senator's policy limits.

S E E D E D   C O N T E N T



Did President Biden take Joe Manchin for another ride? The West Virginia Senator insisted on numerous conditions for the $7,500 electric vehicle tax credit in the Inflation Reduction Act (IRA). Now the Treasury Department is doing an end-run to let more Americans and EVs qualify.

Mr. Manchin last spring argued that the government shouldn't subsidize Americans to buy EVs, especially since some models have waiting lists. But he later surrendered and cut a deal with Senate Majority Leader Chuck Schumer to prevent the well-to-do from pocketing the tax credit and boost U.S. auto manufacturing.

The IRA’s modified $7,500 tax credit, which takes effect this year, includes new price limits ($80,000 for vans, SUVs and pickups and $55,000 for sedans) and income caps ($150,000 for singles and $300,000 for married couples). It is also restricted to EVs assembled in North America.

Half of the credit ($3,750) is tied to an increasing share of EV battery components being made in North America, and the other half to its minerals being extracted or processed in the U.S. or countries with which the U.S. has a free-trade agreement. Under the law as written, few EV models are expected to qualify for even half of the credit in coming years.

Cue the screams from the auto industry. Foreign auto makers and governments complained the law discriminated against them. European leaders have threatened to file a complaint with the World Trade Organization. U.S. auto makers warned the restrictions would dampen demand. EV start-ups selling luxury cars claimed they were jilted.

Enter Treasury, which last week issued guidance that would help automakers circumvent the restrictions by letting EVs leased to consumers qualify as “commercial clean vehicles,” which don’t include North American manufacturing, material sourcing, income or price restrictions.

The IRA’s commercial EV tax credit was intended for the likes of Amazon, UPS and contractors. But under Treasury’s interpretation, a  BMW  i7 (retail price: $119,300) leased to a consumer would qualify for the commercial vehicle credit whether or not it is used by a business. Ditto other EVs no matter their cost or where they’re made.

An Experian report last February estimated that about 28% of new EVs are leased. Many EV drivers prefer leases because they expect battery technology to improve and their resale value to fall quickly. Treasury’s guidance will encourage dealers to lease EVs instead of selling them, and customers may find lease financing more attractive.

All of this is a bait-and-switch on Mr. Manchin. Treasury’s guidance “bends to the desires of the companies looking for loopholes and is clearly inconsistent with the intent of the law,” Mr. Manchin said last Thursday, adding that he plans to introduce legislation that “clarifies the original intent of the law and prevents this dangerous interpretation from Treasury from moving forward.”

Good luck rounding up Democratic votes. As much as Mr. Manchin doesn’t want to admit it, he bought a lemon when he voted for the IRA and now Americans are stuck with it.


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Vic Eldred
Professor Principal
1  seeder  Vic Eldred    4 weeks ago

Poor Joe Manchin.

As they used to say about Poker, "Look around the Poker table, if you don't know who the sucker is: it's probably you!"

 
 
 
SteevieGee
Masters Silent
1.1  SteevieGee  replied to  Vic Eldred @1    4 weeks ago

For someone who many on the right say is so senile he can't wipe his own butt, Biden seems to come out on top quite a bit.

 
 
 
Vic Eldred
Professor Principal
1.1.1  seeder  Vic Eldred  replied to  SteevieGee @1.1    4 weeks ago

You keep forgetting that other people are running the show and they have endless power.

Dumb ass is just a proxy for them.

 
 
 
SteevieGee
Masters Silent
1.1.2  SteevieGee  replied to  Vic Eldred @1.1.1    4 weeks ago

So...  Who, specifically, are these "other people" who seem to have such amazing success owning veteran Senators?

 
 
 
Greg Jones
Professor Guide
1.1.3  Greg Jones  replied to  SteevieGee @1.1.2    4 weeks ago

Susan Rice for one...

 
 
 
Vic Eldred
Professor Principal
1.1.4  seeder  Vic Eldred  replied to  SteevieGee @1.1.2    3 weeks ago

You don't remember the DNC primaty of 2020?  Well, Joe Biden had to make many deals to get the nomination. You may recall that James Clyburn saved the Biden candidacy when he had all those black South Carolina voters march right out and vote for Biden:



Then the Democratic Party came together to clear the crowded field with Obama in the background and all in a single day, most of the other candidates dropped out of the running leaving only Biden and Sanders alone in the race. Eventually a highly publicized deal was reached with Sanders:



Biden eventually made a lot of promises to a lot of people (mostly left wing radicals). This was easy due to the fact that the Biden campaign kept Joe locked up in the cellar. He made few promises and few speeches and granted even fewer interviews. His campaign basically said he's not Trump. The media did the rest by demonizing Trump and essentially blaming Trump for the pandemic. Marc Elias managed to change election laws in battleground states and got the young and the stupid voting. The man who broke all norms by not campaigning and whom we knew little about got 80 million votes. The most ever for a candidate. The next order of business for the key people who helped get Biden elected was to have Susan Rice installed as his Domestic Policy Advisor (Obama's Girl Friday).




And the rest as they say, "is history."


 
 
 
SteevieGee
Masters Silent
1.1.5  SteevieGee  replied to  Greg Jones @1.1.3    3 weeks ago
Susan Rice for one...

So...  12 year veteran Senator Joe Manchin got 'owned' by Susan Rice?  It's literally her job to advise the President you know.

 
 
 
Greg Jones
Professor Guide
2  Greg Jones    4 weeks ago

He might do better as a Republican. Can't understand why he and Sinema stick with the  [removed[party.]

 
 
 
Vic Eldred
Professor Principal
2.1  seeder  Vic Eldred  replied to  Greg Jones @2    4 weeks ago
He might do better as a Republican

His political future may depend on it. Right now he goes home and tells voters "I got screwed!"

 
 
 
Ronin2
Professor Quiet
2.1.1  Ronin2  replied to  Vic Eldred @2.1    3 weeks ago

Which is the reason his voters should dump him. His first job is to look out for his constituents. He has failed miserably on that front. 

 
 
 
Vic Eldred
Professor Principal
2.1.2  seeder  Vic Eldred  replied to  Ronin2 @2.1.1    3 weeks ago
Which is the reason his voters should dump him.

There is a good chance they will. He has a decision to make.

 
 
 
Hallux
Junior Principal
3  Hallux    4 weeks ago

Imagine that, the repubs fave democrat snookered by a demented old man ... @!@

 
 
 
Vic Eldred
Professor Principal
3.1  seeder  Vic Eldred  replied to  Hallux @3    4 weeks ago

A demented old man who ignores the law of the land is sure to muck his side of a deal.

 
 
 
Sean Treacy
Professor Expert
3.2  Sean Treacy  replied to  Hallux @3    4 weeks ago
magine that, the repubs fave democrat snookered

Imagine thinking the demented old man was involved in the details of this.  They just wake him up for the photo op. 

 
 
 
Hallux
Junior Principal
3.2.1  Hallux  replied to  Sean Treacy @3.2    4 weeks ago
Imagine thinking the demented old man was involved in the details of this.

I got used to that from 2016 thru 2020.

 
 
 
JBB
Professor Principal
4  JBB    4 weeks ago

The electricity to power electric cars will mostly come from coal for the time being. Outside the oily rightwing bubble Manchin is okay with that!

 
 
 
Vic Eldred
Professor Principal
4.1  seeder  Vic Eldred  replied to  JBB @4    4 weeks ago
The electricity to power electric cars will mostly come from coal for the time being

Beautiful clean coal?

One of us should tell Joe the good news. It's funny how a few of our members always have a different way of presenting things.

 
 
 
Hallux
Junior Principal
4.1.1  Hallux  replied to  Vic Eldred @4.1    4 weeks ago
Beautiful clean coal?

Do you know of any? Donald does ... care for the quote?

 
 
 
JBB
Professor Principal
4.1.2  JBB  replied to  Vic Eldred @4.1    4 weeks ago

I was commenting on Manchin, not myself...

Let me suggest you shitcan the personal bs.

 
 
 
Vic Eldred
Professor Principal
4.1.3  seeder  Vic Eldred  replied to  Hallux @4.1.1    3 weeks ago

Of course that's who I am quoting. It was made during his campaign stop in WV, right after Hillary Clinton told them she would shut it all down.

The people of WV see it as beautiful as well.

 
 
 
Snuffy
PhD Guide
4.2  Snuffy  replied to  JBB @4    4 weeks ago

Guess again.  Natural gas accounted for 38.4% of electrical generation in the US followed by coal at 21.9%.

 
 
 
Greg Jones
Professor Guide
4.3  Greg Jones  replied to  JBB @4    4 weeks ago

It's going to come from coal and natural gas for a long time. Wind and solar don't produce very much electricity.

 
 
 
Gazoo
Sophomore Silent
4.3.1  Gazoo  replied to  Greg Jones @4.3    4 weeks ago

Wind and solar are also not reliable sources and likely never will be. I’d like to see more research and investment in electro fuels and hydrogen.

 
 

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