EV Push Will Drive U.S. Deficit $200 Billion Higher

Senate Budget Committee Ranking Member Chuck Grassley is increasing his opposition to the Environmental Protection Agency’s tailpipe emissions proposal. He cites a new cost estimate by the Congressional Budget Office.

“The CBO released a ten-year budget and economic outlook projecting a $224 billion increase in the cumulative deficit caused by higher electric vehicle tax credit claims and reduced gas tax revenues,” he says. “CBO noted the EV Rule is the largest factor to contributing to these revisions.”

In a letter to EPA Administrator Michael Regan, Grassley said, “The American taxpayers have not voted for and can’t afford the EPA’s tailpipe standards.” Grassley also noted the challenges the standards pose for auto dealers and wants the agency to clarify its legal authority for promoting the EV Rule. He’d also like the EPA to outline its plans to compensate for the hundreds of billions of dollars in lost tax revenue and extra spending.

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