President's budget boosts incentives to buy electric cars

This is a rush transcript from "Your World," February 15, 2012. This copy may not be in its final form and may be updated.


NEIL CAVUTO, HOST OF “YOUR WORLD”: This is indeed a budget alert -- a budget alert. Just days after its release, we are starting to learn exactly what is in the president’s 2,600-page budget.

Why, you ask? Because we are reading it. Filed under receipts, page 197 in the analytical perspectives section is this little ditty. I kid you not, the president raising the tax credit on the purchase of electric vehicles to $10,000 from $7,500.

But with vehicles like the Volt barely selling, is this the best use of your tax dollars? A lot more stuff like that in there.

Pennsylvania Republican Congressman Mike Kelly not at all happy about it.

But it is just -- it was sort of like a buried headline and there are many like that, Congressman. I don’t know what $10,000 is going to do that $7,500 did not.


REP. MIKE KELLY, R-PA.: Well, you know what? Neil that is why I introduced HR-3768 to unplug the subsidies on electric vehicles.

It’s time for the American people. They should be outraged. And thanks for carrying this story. We need as a people to come together and start saying stop wasting our money. This is all taxpayer money. This is a president who doesn’t know how to control his spending.

And it really does not matter to him because it’s not his money that he’s wasting. It’s yours and mine and the rest of the taxpayers -- $10,000. If $7,500 wouldn’t sell it, let’s throw $10,000 at it. My question is he wants a million of them on the road. That’s a $10 billion cost to the American taxpayer. That’s absolutely ludicrous.

And, again, you know what? Fool me once, shame on you. Fool me twice, shame on me. This guy has doubled down and done things that are absolutely crazy. The venture capitalist in chief has gone crazy and he’s spending your money and my money and the American taxpayers’ money.

CAVUTO: But, you know, Congressman, people love these electric cars - - by the way, you’re quite right. The jury is more than out on this. That’s something on a whole ‘nother planet.

But then let the market decide. By the way, the people who are buying these, we’re told, are pretty well-heeled. They’re $150,000 and over in income, so I dare say a great many of them may not need that credit. But having said that let it survive based on the marketplace.

KELLY: Yes. And you and I both know a good product doesn’t need to be subsidized. A bad product, it doesn’t matter how much money you throw at it. It will not sell it. This is science way ahead of the market. This is, again, a big waste of taxpayer money, and we need to blow the whistle on it.

I love your thing going off in the background. It is a taxpayer alert. This is a danger.


CAVUTO: But there are many more like that. I wish we had hours. I could do like a Charlie Rose thing and just go on and on.

But I’m telling you, there’s so much in here where we just keep seeing this stuff. And they’re tucked in, now that this budget has a prayer, because the Senate will not even take it up. That’s under Harry Reid’s leadership. He knows I guess what a turkey this is.

So where do we go? What does this mean?

KELLY: Well, I think that in a country like ours, we have about a year to really come forward and make a statement. If you’re fed up with it the way I know you are and the way I’m fed up with it, and the American taxpayers, they should be outraged, you can do it. Just go to the polls and say enough is enough. This is a president who should be going on TV and saying, hey, my bad, my bad. Bad idea. Didn’t work. I wasted your money. You know what? I will go back into the classroom. Again, this has been the most expensive sabbatical this nation has ever seen. It’s just ludicrous, what we’re doing.

CAVUTO: We’ll watch it. We’ll watch it.

Congressman, thank you very, very much, Mike Kelly of the fine state of Pennsylvania.

KELLY: Thanks, Neil. Hey, great being with you.

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