GOP looks to do away with tax subsidies in order to create tax cuts for everyone
Washington Free Beacon:
Tesla CEO Elon Musk's decision to quit serving as a business adviser to President Trump because of Trump's exit from the Paris climate accord is spurring additional scrutiny of the billions of dollars in tax subsidies Tesla, SolarCity, and other Musk companies have received over the last decade.This would fit in with the GOP belief that Washington should not be picking winners and losers. Let the free market make those choices and consumers will be better off. Musk gets subsidies for selling inefficient solar energy and his car company gets government help with tax credits to the one percent who are buying what few cars he produces.
The Heritage Foundation's Stephen Moore called the "green-energy" tax credits Musk and his companies have benefited from "low-hanging" fruit that could help Republicans offset plans to lower the corporate rate, estimating there could be $150 billion in savings over 10 years by ending them.
"We're scrounging for offsets so those credits and subsidies are the low-hanging fruit," he told the Washington Free Beacon Friday.
Moore said Trump's decision to leave the Paris Agreement is a sign of the changing times with Republicans in control of the White House and Congress, and that Musk is simply reacting to the less hospitable political environment.
"Elon Musk has received $4.9 billion" in green tax benefits, Moore said. "He has a vested interest in making sure these subsidies continue so of course he's mad at Trump."
Trump pledged to end the climate accord on the campaign trail. Musk's decision to leave Trump's advisory team has only fueled more criticism of the green subsides and how he has made his living.
"Good riddance," said Benjamin Zycher, an American Enterprise Institute scholar and a vocal critic of the Paris deal. Musk's entire business model is based on government subsidies, Zycher added.