‘Honestly, I would just can this whole bill’: Elon Musk rips Biden’s Build Back Better plan despite its massive subsidies for electric cars
- Biden’s plan includes big subsidies for purchasers and manufacturers of electric cars
- Musk blasted the legislation despite its subsidies for electric vehicles
- Purchasers get up to $12,500; manufacturers can get $4,500, but only union shops in the U.S.
- Musk called to ‘get rid of all the subsidies’
- He also blasted giving ‘capital allocation’ to the government
- He has been unloading shares and assets while facing a massive tax bill
Tesla founder Elon Musk tore into President Joe Biden‘s ‘Build Back Better’ plan over its tax hit on America’s richest and its regulatory framework – even as the plan prepares to provide big subsidies for electric cars.
Musk, who has gone after Democratic tax policies in the past, slammed the proposal in an interview with the Wall Street Journal.
‘Rules and regulations are immortal,’ he said. ‘They don’t die. The vast majority of rules and regulations live forever… there’s not really an effective garbage collection system for removing rules and regulations, so this hardens the arteries of civilization where you are able to do less and less over time.
He even went after the $1.8 trillion bill’s programs meant to greatly reduce the costs of electric vehicles, with subsidies for purchasers as well as manufacturers – though in House bill language it goes only to union shops who make vehicles in the U.S.
That means it helps General Motors but not necessarily Tesla or foreign manufacturers like Toyota, who do not have a unionized workforce in their U.S plants.
‘Honestly, it might be better if the bill doesn’t pass,’ said Tesla CEO Elon Musk, who ripped President Biden’s Build Back Better plan during a CEO forum
‘Honestly, it might be better if the bill doesn’t pass,’ Musk told the Journal’s CEO Council Summit.
‘I’m literally saying get rid of all subsidies,’ he said.
The billionaire SpaceX founder, who has been unloading assets, also went after pay-fors in the Biden plan, which provide funds for climate change, universal pre-K, elder care, and other programs.
Consumers get up to $12,500 for purchasing an electric vehicle.
A House bill provides a $4,500 tax credit to electric vehicle manufacturers, but it applies only to vehicles made in the U.S. with union labor
Musk also took a shot at the plan’s tax provisions, and panned its subsidies, despite his company benefitting from subsidies in the past
President Joe Biden, seen with First Lady Jill Biden (R), still must get the plan through the 50-50 Senate
‘It does not make sense to take the job of capital allocation away from people who have demonstrated great skill … and give it to, you know, an entity that has demonstrated very poor skill in capital allocation, which is the government,’ he said.
The House-passed bill and White House framework of Biden’s plan slaps a 5 percent surtax on income of more than $10 million, plus an additional 3 percent surtax on income of more than $25 million.
While the provision targets the very wealthy, it goes after income, whereas many ultra-rich people have most of their holdings in stocks or other assets.
Must began selling shares in Tesla last month after putting out a Twitter share asking followers if he should sell.
‘Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,’ he tweeted.
CNBC reported that Musk was facing a potential tax bill of $15 billion amid expiring stock options and loans secured by his sky-high Tesla stock.
Biden’s plan remains snarled in the Senate, as Democrats seek to reel in support from West Virginia Sen. Joe Manchin and Arizona’s Kyrsten Sinema.
The bipartisan infrastructure law Biden signed provides funds for electric vehicle charging stations.
Tesla’s road to become the most valuable car company came with substantial federal and state subsidies for electric car purchases.