Joe Biden’s cronies in Congress are up to their old tricks again.
Just like when Democrats earmarked $90 billion in Barack Obama’s American Recovery and Reinvestment Act of 2008, Congress is using their latest spending bill to manipulate Americans into supporting the Left’s radical environmentalist agenda.
Tucked quietly in President Biden’s socialist “Build Back Better” Act is a green scheme that could have devastating implications for American motorcycle companies.
In the bill, which passed the House of Representatives late last week, is a provision that would triple a federal tax credit for electric motorcycles.
If the President’s bill is signed into law, bikers would receive a maximum tax break of $7,500 if they purchase an electric motorcycle that meets certain government requirements.
While that may seem like a good deal for motorcycle enthusiasts everywhere, the devil is in the details.
Electric motorcycles already receive a 10% tax credit, so by tripling the tax credit to 30% Congress is admitting that there is not enough organic demand for these bikes.
Harley-Davidson’s efforts to sell their electric LiveWire motorcycle also demonstrate the lack of demand for these bikes.
If one were to go to the LiveWire’s page on the Harley-Davidson website, you would find an advertisement for an Apple TV+ show that detailed the adventures of celebrities Ewan McGregor and Charley Boorman, traveling South America on LiveWires.
Underneath that, one would find an advertisement for the tax incentives you would receive for purchasing a LiveWire.
It is only after that, that the reader can find actual specifics about the LiveWire itself.
To reiterate, the first two pitches Harley makes about their electric motorcycle are that celebrities like it and that the government will let you keep more of your money for buying one, ouch.
Although with a starting MSRP of $29,799, perhaps the saving money pitch is to reduce the viewers’ sticker shock.
However, should this 30% tax credit prove to be enough of an incentive to spur sales of electric motorcycles, the positive sales would only last as long as the government incentives do.
Should motorcycle manufacturers misinterpret this hypothetical economic signal and develop more electric motorcycles that the general masses do not want at the expense of developing the motorcycles they do want, then they would be putting short-term profits ahead of long-term gains, which is a recipe for a Solyndra-style disaster.