We at CFIF often highlight the clear and present danger that drug price control schemes pose to American…
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New Lung Cancer Breakthrough Illustrates the Potential Peril of Drug Price Controls

We at CFIF often highlight the clear and present danger that drug price control schemes pose to American consumers, who benefit from our private pharmaceutical sector that leads the world - by far - in innovation.  A new lung cancer treatment breakthrough in the form of Amgen's Lumakras illustrates that interrelationship.

Simply put, Lumakras reduced the risk of progression by 34% compared to chemotherapy in patents with advanced lung cancer, which is particularly welcome considering lung cancer's especially low survival rate (18.6% over five years, and just 5% for advanced forms).  The breakthrough required years of research and enormous amounts of investment, however, which The Wall Street Journal notes makes Lumakras the type of innovation put at risk by new drug price controls…[more]

September 22, 2022 • 05:06 PM

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Eliminate, Don’t Expand, the Wasteful Federal Electric Vehicle Subsidy Print
By Timothy H. Lee
Thursday, October 03 2019
Americans should be free to purchase EVs if they so choose in an open marketplace. But they shouldn’t be forced to subsidize them, particularly on behalf of wealthy Americans concentrated in California, simply because the federal government wants to pick winners and losers and reward favored special interests.

If you’re like most Americans, you think of electric vehicles (EVs) as a novelty that may or may not succeed in the marketplace of products, and an option that people should be perfectly free to purchase with their own dollars if they so choose. 

But like most Americans, chances are that you also oppose taxpayer subsidies for EVs and believe that the federal government has no business manipulating the market or propping up other people’s EV purchases. 

That’s the unequivocal public consensus, according to a recent opinion survey by the American Energy Alliance (AEA): 

Voters don’t think they should pay for other people’s car purchases.  In every state, overwhelming majorities (typically three-quarters of respondents) said that while electric cars might be a good choice for some, those purchases should not be paid for by other consumers.  Voters’ sentiments about paying for others’ electric vehicles are especially sharp when they learn that those who purchase electric vehicles are, for the most part, wealthy and/or from California.  There is almost no willingness to pay for electric vehicle car purchases.  When asked how much individuals would be willing to pay each year to support the purchase of electric vehicles by other consumers, the most popular answer in each state (usually more than two-thirds of respondents) was “nothing.” 

Moreover, the survey found that “few voters (usually less than 1/5) trust the federal government to make decisions about what kinds of cars should be subsidized or mandated.” 

Despite that overwhelming public opposition to federal government meddling and taxpayer subsidies, some in Congress stubbornly persist in not only working to preserve the EVs cronyist subsidy system, but hope to expand it. 

As the end of the year approaches and lawmakers negotiate tax legislation, some propose an array of “green” tax extensions and a tripling of the number of EVs per manufacturer that will be eligible for taxpayer subsidies.  Making matters worse, even some otherwise sober lawmakers who oppose EV subsidies might be tempted to capitulate in order to obtain other unrelated priorities they seek. 

By way of historical context, the EV subsidy boondoggle was originally justified as a temporary, limited incentive to kickstart the fledgling EV industry.  In 2008, before the American fracking revolution subsequently eased our concerns about overreliance on foreign oil, the Pelosi-Schumer Congress created $7,500 tax credit for purchasers of EVs.  Senator Orin Hatch (R – Utah) at the time emphasized the subsidy’s limited scope and duration: 

I want to emphasize that, like the tax credits available under current law for hybrid electric vehicles, the tax incentives in the Freedom Act are temporary.  They are needed in order to help get these products over the initial stage of production, when they are quite a bit more expensive than older technology vehicles, to the mass production stage, where economies of scale will drive costs down, and the credits will no longer be necessary. 

Well, over a decade later we’re well past the “initial stage of production,” yet they remain “more expensive” and continue to receive taxpayer subsidies. 

The Obama Administration expanded the credit program to cover the first 200,000 EVs from each manufacturer producing them, at a cumulative cost of $2 billion by 2017. 

The EV subsidy’s defects, however, extend far beyond just its accumulating cost. 

Outrageously, approximately 80% of federal EV subsidies go to households with incomes over $100,000, who don’t need their auto purchases subsidized by working-class taxpayers.  Americans outside of California will also be offended to learn that approximately half of EV sales occur in California, which constitutes only 12% of the U.S. auto market. 

Conspicuously, EVs don’t even offer the environmental benefits that proponents seem to assume.  That’s because they must recharge their batteries using the U.S. electric grid, which provides power from energy sources that often produce more pollutants than today’s more efficient internal-combustion engines. 

Despite the EV subsidy program’s overwhelming unpopularity, cost, unfairness and logical indefensibility, however, some in Congress aim to expand it in legislative negotiations.  Specifically, they want to triple the current cap of 200,000 cars per automaker to 600,000. 

Responsible lawmakers owe it to American taxpayers to oppose that proposal, and instead work to eliminate the outdated, ineffective and wasteful subsidy program. 

Americans should be free to purchase EVs if they so choose in an open marketplace.  But they shouldn’t be forced to subsidize them, particularly on behalf of wealthy Americans concentrated in California, simply because the federal government wants to pick winners and losers and reward favored special interests. 

The EV taxpayer subsidy boondoggle must be eliminated, not expanded. 

Quiz Question   
Which one of the following U.S. Presidents signed the executive order establishing the Federal Emergency Management Agency (FEMA)?
More Questions
Notable Quote   
 
"The Internal Revenue Service (IRS) sent over $1.1 billion in child tax credit payments to incorrect recipients during the COVID-19 pandemic, according to an audit by the Department of the Treasury's Inspector General (IG) for Tax Administration on Tuesday.The IRS sent the payments to 1.5 million people between July and November of 2021 during the pandemic, according to the audit. Additionally, the…[more]
 
 
—Arjun Singh, The Daily Caller News Foundation
— Arjun Singh, The Daily Caller News Foundation
 
Liberty Poll   

Choosing from the list below, what issue is currently most important to you heading into the mid-term elections?