Congressmen from the Democratic Party have proposed a program to support the electric car industry. It would be a major boost for U.S. automakers, but the initiative would face resistance from Republicans, foreign automakers, as well as Canada and Mexico. Politicians are proposing to increase the tax subsidy to $12500 per car, including $4500 for union-produced cars and $500 for American batteries. Cars made by union members after 2027 would be eligible for the subsidy. The tax credit program would cost $15.6 billion over 10 years - disproportionately benefiting GM, Ford and Stellantis (owned by Chrysler), whose employees are unionized en masse. On the eve, about a dozen major foreign automakers urged two U.S. senators to oppose the initiative because these brands also make cars in the United States, but their employees, like Tesla workers, do not form unions.
Representatives from Mexico and Canada criticized the bill, citing trade agreements. The tax breaks were opposed by the governors of 11 states, including Texas, Florida and Arizona. They fear discrimination against workers who are not unionized. Under the bill, the U.S. Postal Service would also get $6 billion to buy electric cars and infrastructure: by 2028, only electric cars would be purchased, and by 2030 their share would reach 70&8239;%. The phased abolition of tax credits will start after the sale of 200,000 cars. The bill also provides tax subsidies for electric bicycles and tricycles, 30-percent subsidies for commercial electric vehicles, and subsidies for used electric vehicles. Financial incentives for conversion and expansion of existing production facilities are provided.