Stabenow: More green for the rich (The Michigan View 2.7.11)

Posted by hpayne on February 8, 2011

bilde (1)Michigan Sen. Debbie Stabenow sweetened subsidies for wealthy Americans Monday by introducing legislation that would allow buyers of electric vehicles like the $87,000 Fisker Karma and the $40,000 Chevy Volt to claim their $7500 tax credit at the time of purchase. Currently, the tax credit can only be claimed on April 15.

“This is a new technology. . . just like cell phones and computers were at the beginning and as more people bought them, the price came down dramatically,” Stabenow told WJR Radio’s Frank Beckmann before introducing her Charging America Forward Act. “The same is true of the automobile.”

Except that cell phone and computer buyers didn’t get massive subsidies from taxpayers.

Indeed, her digital examples are proof of the folly of her legislation. Government has no more idea what the auto technology of tomorrow is than that cell phones would emerge to dominate telephony 30 years ago. Efforts to pick winners and losers only wastes taxpayer resources and diverts capital from more worthy endeavors.

“I remember getting a big cell phone put in the back of my car for $1500,” Michigan’s chauffeured junior senator said. A pity the well-to-do didn’t receive subsidies then.

This time, however, Stabenow is looking out for the fat cats.

In addition to the purchase subsidy, her bill would also aid the rich (high-priced electric cars are targeted at buyers making $200,000 and up) in buying electric accessories like $2500 home charging stations so the wealthy won’t be inconvenienced by long charge times.

“We’re extending the tax credits for the charging stations,” she said. The bill would expand the current tax candy beyond the charging stations to wiring and other costs associated with mansion and workplace installation.

Of course, Stabenow claims that electrics won’t always be the chariots of the gentry. Carefully choosing her words with Beckmann to avoid tipping off listeners to new “spending,” she claimed that she is “investing in the cars of the future.”

But “investing” means distributing money to profitable ventures. And as Beckmann pointed out, hybrid-electrics have actually been declining in popularity. Stabenow’s response? “Knock on wood” that will change, she said. That isn’t the language of an investor – it’s the language of a frivolous pol who is recklessly spending other people’s dough.

In addition to rewarding the green gentry with more green in their wallet, Stabenow’s bill also takes care of Democrats’ corporate cronies. The act authorizes the U.S. Energy Department to throw another $2 billion at “the manufacturing of advanced batteries and components.” These grants have overwhelmingly gone to politically-connected companies like A123 Systems and South Korea’s LG Chem.

“Other countries are acting to develop their own advanced vehicle markets because they realize the tremendous economic potential this new technology represents,” said Stabenow in a statement defending her market socialism. “These initiatives will allow Michigan innovators to continue to out-compete the world and create new jobs here.”

Apparently, Stabenow is unaware that the U.S. has become the world’s dominate economy – with 30 percent of the world’s GDP – by NOT following the destructive Democratic Socialism found in Europe and elsewhere.

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