The corrupt bargain in the Inflation Increase Act, aside from stealing from working families to subsidize green special interests, now risks a trade war with the European Union.
It’s a tough competition over which set of leftists can harm their own people more.
The European Union called on the US to amend certain tax benefits contained in recently-enacted green legislation given what it called their discriminatory nature, and warned of potential retaliation.
The bloc wants Washington to remove discriminatory content and production requirements in the Inflation Reduction Act, and to receive the same treatment as other US trading partners.
What are we talking about specifically?
The provisions included tax credits for electricity from certain renewable resources; for sustainable aviation; for production of hydrogen; for clean vehicles;, for advanced manufacturing production; and for clean fuel production.
The EU is now warning of “reciprocal or retaliatory measures.”
The Biden administration’s response is that the EU should have more and better subsidies.
“Katherine Tai, the Biden administration’s most senior trade official, has called on the EU to introduce subsidies”
The EU is calling this a subsidies race to the bottom. And I have to agree. Except that instead of a race to attract productive businesses, it’s a competition to attract completely worthless companies that drink taxpayer blood for a few years before declaring bankruptcy, unless they go on being subsidized in perpetuity.
This is like two mangy dogs fighting over a rotting sausage. But they’re fighting over it with our money.
“European electric cars, batteries and renewable energy products should have the same access to the US market as those from Canada and Mexico, EU officials said on Monday, as the bloc prepares to start negotiations with Washington over its Inflation Reduction Act.”
Lads, don’t fight. You’re all getting the batteries and “renewable” garbage from China anyway.
This is a tough race over who puts more taxpayer money in China’s pocket while bankrupting productive domestic energy industries.