Gavin Newsom is already picking his battles against the incoming Trump administration.
He made a major miscalculation that will come back to haunt him.
And Gavin Newsom started one sick fight with Donald Trump that he’ll lose badly.
Gavin Newsom will push back against the electric vehicle tax credit being canceled
President Joe Biden tried to prop up the struggling electric vehicle market with taxpayer money.
The 2022 Inflation Reduction Act included a $7,500 tax credit for anyone who bought or leased many electric vehicle models.
Giving electric vehicle buyers a tax credit was a giveaway to wealthy Democrats who were already going to buy them anyway.
The $7,500 tax credit is going to be repealed by President-elect Donald Trump to help pay for another round of tax cuts.
California is the biggest beneficiary of the Inflation Reduction Act’s electric vehicle tax credit, as it is the biggest market for them in the country.
The state announced that the sale of new gas-powered vehicles will be banned by 2025.
California is trying to ramp up the adoption of electric vehicles in the interim and taxpayer money from the federal government was a welcomed assist.
Losing the $7,500 tax credit that Biden dangled for the wealthy to pick up an electric vehicle isn’t going to fly in the state.
California Governor Gavin Newsom announced that the state would offer its own $7,500 tax credit if the one in the Inflation Reduction Act is repealed.
“Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay,” Newsom claimed. “We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California. We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”
The energy that’s used to create the electricity to power electric vehicles creates pollution.
California discovers the problem with socialism is running out of other people’s money
Newsom wants to position himself as the leader of the resistance against Trump to help his Presidential campaign in 2028.
He filed more than 100 lawsuits against the first Trump administration.
But California doesn’t have the money for more lawsuits or to give tax credits to wealthy electric vehicle buyers.
The Legislative Analyst’s Office found that California will have a $2 billion budget deficit next year because of “atypically high spending growth.”
“There is really no capacity for new commitments because we do estimate there to be pretty significant operating deficits in subsequent years,” legislative analyst Gabriel Petek said.
California would have to raise taxes or cut spending elsewhere for Newsom to play resistance leader.
The state’s budget deficit is projected to climb to $20 billion in 2026.
“California has a $2 billion deficit that’s projected to explode in the next few years, and Newsom’s solution is to spend another $100 million on lawyers to fight President Trump,” California Assemblyman James Gallagher (R-CA) said. “These ‘resistance’ stunts cost money, and thanks to Newsom’s incompetent budgeting, California doesn’t have any.”
Gavin Newsom’s ambitions are going to be thwarted because he frittered his state’s money away.
