Powerline: Berkley study: clean energy credits go to the rich.
The Energy Institute at the Haas School of Business at the University of California at Berkeley has posted a working paper entitled “The Distributional Effects of U.S. Clean Energy Tax Credits.” The paper is a devastating indictment of who’s getting Cecil the Lion’s share of the tax credits. If this were any other cause than “green energy,” the Left would be screaming about the redistribution of income from the middle class to the upper class.
Here’s the complete abstract:
Since 2006, U.S. households have received more than $18 billion in federal income tax credits for weatherizing their homes, installing solar panels, buying hybrid and electric vehicles, and other “clean energy” investments. We use tax return data to examine the socioeconomic characteristics of program recipients. We find that these tax expenditures have gone predominantly to higher-income Americans. The bottom three income quintiles have received about 10% of all credits, while the top quintile has received about 60%. The most extreme is the program aimed at electric vehicles, where we find that the top income quintile has received about 90% of all credits. By comparing to previous work on the distributional consequences of pricing greenhouse gas emissions, we conclude that tax credits are likely to be much less attractive on distributional grounds than market mechanisms to reduce GHGs.
Market forces? Let the little people decide? Harold, get me another martini – I’m feeling faint.
5 responses to “Well that’s the point of it, after all”
They sold that house to Dr. Dre right after Apple bought Beats Audio from Dre for 1.2 Billion
Just think of all the Billions Elon Musk is worth thanks to our tax dollars subsidizing his company… If it weren’t for that, Tesla would be worthless
Indeed. The firm’s profits are derived solely from selling their green credits to conventional auto makers. It’s an entire business plan based on government coercion and middle class taxpayers subsidizing the rich.
Who wants to talk about coal and energy subsidies? Or should we just pretend they don’t exist.
To quote Willie Sutton: “That’s where the money is.”