Coalition urges Congress to end costly green subsidies, citing economic harm | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is CJ Staff.

    A coalition of organizations is urging Congress to terminate the subsidies associated with the Inflation Reduction Act (IRA) and the elements of the Green New Deal it codified in policy. The coalition, including the John Locke Foundation's Center for Food, Power, and Life, argues that these subsidies are counterproductive and impose undue financial burdens on taxpayers.

    The Inflation Reduction Act was passed by Congress in August 2022 and signed by President Joe Biden. It passed the US Senate in August of 2022 by a vote of 51-50, with all Republicans opposing it. Vice President Kamala Harris casting the tie-breaking vote. It passed the US House of Representatives by a vote of 220-207, with all Democrats in favor and all Republicans opposed.

    The IRA was a major spending and tax law billed as an effort to reduce inflation, lower prescription drug costs, and promote clean energy investments, though critics argue it was more of a climate and tax law than an inflation-fighting measure. Spending $369 billion dollars on climate policy, it created tax credits and subsidies for solar, wind, electric vehicles (EVs), and other renewable energy sources. It also raised corporate taxes and set aside $80 billion for the Internal Revenue Service to hire more agents.

    "The IRA is filled with numerous subsidies that were designed to shift our country away from reliable electricity generation (coal and natural gas) to unreliable electricity sources (e.g. wind and solar)," the coalition says. "This comes at a time of concern about the reliability of the nation's electricity grid, in large part because of misguided corporate welfare policies that undermine reliable baseload generation. There are also IRA subsidies that work in conjunction with other policies, such as the Environmental Protection Agency's de facto electric vehicle mandate, to kill off gas-powered vehicles - undermining the freedom of Americans to choose their cars."

    The coalition's statement emphasizes that the subsidies have led to increased government spending without delivering the promised environmental benefits. They contend that the financial incentives have distorted energy markets, leading to inefficiencies and higher costs for consumers. The coalition also raises concerns about the long-term economic impacts, suggesting that the subsidies could hinder innovation by promoting reliance on government support rather than market-driven solutions.


    In a related analysis, the John Locke Foundation highlights several ways in which the Inflation Reduction Act may adversely affect Americans. The foundation points out that by raising taxes on corporations and reducing the productivity of capital, the IRA could potentially shrink the economy and contribute to inflation. They note that the poorest households are disproportionately harmed by inflation and that the increased tax burden from the IRA could exacerbate these challenges.

    The coalition's call to action reflects a growing debate over the effectiveness and economic impact of government subsidies for green initiatives.

poll#218

Now that President Trump is picking his cabinet and immediate staff to insulate him from the poor judgement of the Bureaucratic Class, while moving quickly to transition this Constitutional Republic unto a wise and sustainable direction: What is your immediate impression as to how our nation will prosper?

  We are headed toward a Golden Age in America's self-governed society.

  This will all wind up in a clustered mess since Trump is a Fascist, and thought to be the second coming of Adolf Hitler by our best journalists.

  This is a time where critical days lay ahead, where only wise and responsible decisions must be made to sustain US.

  I generally do not pay attention, but expect only the best to occur ... and that is what I always expect.

50 total vote(s)     What's your Opinion?