Tag: Tax Credits

More Ranting on Solar Panel Tax Credits

 

Over the weekend, Biden Administration Energy Secretary Granholm proposed that lower- and middle-income families should buy electric cars and go into debt to install home heat pumps, home insulation, and home solar panels because those families can claim a tax credit in the future. This was her answer for families struggling with inflation. She talked of a 30% discount on prices. Her exact language as to where the 30% discount is coming from is unclear, but it appears she was trying to say that the 30% tax credit specified in the “Inflation Reduction Act” amounts to a 30% discount on the price of installation. She was particularly pushing this at low- and moderate-income families.

But … unless the new tax credits are written differently from most prior tax credits (including prior energy-oriented tax credits), the credits are not “refundable,” meaning that the consumer can use them only to offset the consumer’s federal income tax liability. If the consumer has no federal income tax liability, the tax credit is not “refunded” to the consumer. A large percentage of low- and moderate-income families do not have federal income tax liability. A tax credit is useless to a person with no federal income tax liability.

Join Jim and Greg as they welcome the news that it looks rather unlikely that the Senate Democrats will be able to pass a version of the Build Back Better legislation by it’s self-imposed Christmas deadline. They also unload on the Biden administration after it cut the video feed of a presentation by a Taiwanese official who offered a presentation showing Taiwan as a different color than China on the map. And they react to Chris Wallace bolting Fox News for CNN while offering a modest suggestion for his replacement.

 

Demanding More from the Childless

 

Should the childless pay higher taxes so that families with children can pay less? That is the question asked, and answered in the affirmative, by conservative columnist Reihan Salam in a recent column at Slate.

Salam, who is himself childless, comes to this conclusion after analyzing some of the realities that beset parents who are raising children in these difficult times. His major premise is that it is unjust to impose heavy tax burdens on couples raising children because it is they who are making the sacrifices necessary to produce the generations to come — and to raise them to not only be economically productive, but to pass on the social capital upon which the nation thrives.