Automakers want Congress to lift the cap on EV tax credits. CEOs of General Motors, Ford, Chrysler, and Toyota say consumers will buy more electric vehicles if more EVs are eligible for a tax credit. Currently, the credit begins to phase out once a company sells 200,000 plug-in electrics. The CEOs also say they need the credit to offset higher production costs. Missing from the letter: Tesla CEO Elon Musk, whose firm already has hit the credit limit.
Oklahoma lawmakers will hold a special session to debate tax cuts. Gov. Kevin Stitt wants lawmakers to eliminate Oklahoma’s sales tax on groceries and reduce the top individual income tax rate from 4.75 percent to 4.5 percent. Whether lawmakers oblige remains in question: Democrats support only eliminating the grocery tax and oppose an income tax rate cut.
Massachusetts tax breaks helped businesses but didn’t create promised jobs. A Business Journal analysis of the Economic Development Incentive Program finds that of 98 firms awarded over $104 million in tax breaks last year, 55 failed to reach their pledged hiring targets. The Journal reports a significantly higher miss rate than before the pandemic. The companies blame remote work for failing to meet hiring targets.
German vice chancellor might break up oil companies since a fuel tax cut isn’t curbing prices. Germany cut its fuel taxes on June 1, but prices at the pump keep climbing. Now, Vice Chancellor Robert Habeck wants Germany’s antitrust authority to examine companies’ finances and perhaps break up the firms. He acknowledged his plan would not help consumers today.
Thursday’s Prescription. Rep. Jim Cooper (D-TN) will be this week’s guest on TPC’s webcast The Prescription. Cooper, who is retiring after more than 30 years in Congress, will discuss current fiscal challenges, the Biden agenda, and the loss of bipartisanship. Register here.
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