Here is a recent quote for the Democrats to take some time to chew on: “Government is simply the biggest corporation, with a monopoly of violence.”
That quote came at The Wall Street Journal’s CEO Council Summit. It was delivered by none other than Elon Musk, the chief executive of both Tesla and SpaceX. Musk also used the platform to take a few shots at the domestic agenda of President Biden.
Musk said, “It does not make sense to take the job of capital allocation away from people who have demonstrated great skill in capital allocation, and give it to an entity that has demonstrated very poor skill in capital allocation, which is the government.”
This wasn’t the first highly charged comment Musk made at the summit. He explained earlier that the Senate should not consider passing the Build Back Better Act. This legislation which will cost $1.75 trillion has already been approved by the House of Representatives. It would drastically expand various social programs which include preschool, subsidies for childcare, and initiatives for dealing with climate change.
Not only did Musk disapprove of passing the Build Back Better Act, but he also disapproved of the way that President Biden is dealing with China. It was written in The Wall Street Journal that Musk believes that some in China’s government grew up feeling like they were being pushed around as a small economy on the global stage. Now they are realizing that China is going to be the “big kid on the block.” Musk described the good relationship Tesla has with the Chinese government.
This comment from Musk was interesting, to say the least. He said that backing from the federal government for the electric vehicle industry was unnecessary. He focused on the plan to increase the electric vehicle tax credit from $7,500 to $12,500. He also said that building charging stations across the country was unnecessary. Musk claimed that the country just doesn’t need support for gas stations and that it should be deleted from the legislation.
Rep. Kevin Brady, the Republican from Texas and the Ranking Member of the House Ways and Means Committee, spoke recently with The Daily Wire. His committee prepares the was for taxes and fiscal policy measures. Brady agreed with Musk, saying that the electric vehicle tax credit is only positive for those who are high earners.
Brady said in the interview that if this bill passes, that means a family who makes $800,000 per year will be eligible for a $12,500 check. They will be able to buy a luxury electric vehicle with up to a $74,000 price tag. “That check they’re getting will be paid for by the maid who comes to clean their house. It’s a stunning giveaway to the wealthy,” Brady noted.
The comments from Musk and Brady seem to be supported by the Congressional Budget Office. They are the federal government’s nonpartisan fiscal watchdog. The CBO said that Biden’s Build Back Better Act would add $367 billion to the deficit by the year 2031. This is not considering the possible $207 billion that could rise up from the intense tax enforcement work.
On top of all this is a report from the Committee for a Responsible Federal Budget. This report implies that the real cost of the president’s bill may be $4.9 trillion. This total would be caused by several arbitrary sunsets and expirations.
An example of this is that the legislation will likely extend both the American Rescue Plan’s Child Tax Credit increase and Earned Income Tax Credit expansion for a year. It will also make the Affordable Care Act expansions available through 2025.
Maybe the White House administration ought to listen to Musk because the countdown for Biden’s takeoff on the bill is looming.