Electric roads

As President Joe Biden and House Speaker Kevin McCarthy begin to square off on a compromise debt ceiling bill, the subsidies in the so-called Inflation Reduction Act, or IRA, for the purchase of electric cars will prove a major, if not the major, sticking point. McCarthy clearly knows that Goldman Sachs, Brookings and other respected observers have predicted that these EV credits could cost taxpayers $390 billion over the coming decade — or at least twenty-seven times the original estimate. Yet the president is also acutely aware that preserving the IRA’s role in facilitating a rapid transition away from gas-powered vehicles is the reddest of lines for his progressive base.