President Obama’s proposed budget calls for boosting electric-car subsidies to $10,000, up from the present $7,500, even though plug-ins are typically bought by the wealthy.
That’s significant because the election-year budget attempts to narrow deficits by increasing taxes on the wealthy.
If 10,000 electrics like the Chevrolet Volt extended-range sedan, a plug-in that qualifies for the subsidy, were sold a year, the program would cost taxpayers another $100 million a year, reports the Daily Caller, via Yahoo News.
Interestingly, the Daily Caller points to General Motors statements that the car are bought by individuals with an average family income of $170,000 a year, which would make them among the nation’s top earners.
Many Republicans, including radio commentator Rush Limbaugh, have been blasting electric car subsidies, especially as they relate to the Volt.