The president of Toyoto operations in North America, Jim Press, thinks that his giant auto company deserves U.S. taxpayer handouts.
Actually, that's not quite right. Toyota is already getting hefty subsidies from U.S. taxpayers courtesy of federal tax credits (up to $3,600) afforded to buyers of hybrid powered cars. The 2005 Energy Policy Act, however, limits the number of car buyers who can take advantage of the tax credit to 60,000. The act also cut back on the size of the credit for the Prius from $3,150 to $1,575 as of October 1. Other Toyota hybrids — such as the Camry — have seen tax credits reduced to $775–$1,300.
Mr. Press said in a speech this week to the Electric Drive Transportation Association that it's time for Uncle Sam's stinginess to come to an end. "By encouraging consumer support for a promising new technology, our government is supporting innovation and investing in our nation's future."
Well, that's one way of putting it. Another might be: "By subsidizing people who buy Toyota products — products manufactured by one of the largest privately held corporations in the world — our taxpayers are supporting Toyota employees and stockholders at a time when GM and Ford are on economic life support. Thank you America!"
President Bush, as you might expect, is all for this. If he's ever said no to a corporate handout, it's escaped my attention. The Congress, however, has been reluctant to inflate the corporate welfare checks any further — at least, so far. It will be interesting to see if all the red-faced populist rhetoric against Republican coziness with K-Street will have any bearing on how the Democrats deal with Toyota's demand for even bigger and more obnoxious handouts.
Look, I have nothing against hybrid powered cars. There are even a number of Cato staffers who drive them. It's just that, personally, I don't like being forced to pay for someone else's car. But that's just me.