Biden’s Allocation of Taxpayer Dollars: Potential Benefits for China Risking American Workers

A new policy proposal by Biden’s Treasury Department for a green tax credit is going to benefit the People’s Republic of China with US taxpayers’ dollars.

This will come at the expense of American industries and workers, causing the biggest US steelmakers and their unions to rise up.

The Biden-China Connection

The United Steelworkers union and the top American steelmakers penned a joint letter to the Biden Treasury Department, slamming the suggested new policy, The Daily Caller reports.

The industry and union leaders are worried that the Biden administration’s tax incentives would boost Chinese steel producers, not American ones, a report by The Wall Street Journal reveals.

The letter attacks a proposed bonus tax credit for projects generating green energy.

While the 10% tax credit is supposed to boost projects using US-made components and metal, the policy has a gap in allowing solar panel companies to use foreign-made steel for some of the needed components.

Thanks to the massive American investments and trade over the past few decades, Communist China has become the biggest steel producer in the world of green energy tech, such as solar panels.

The biggest winner from Biden’s huge climate change deal – the cornerstone of “Bidenomics” – China https://t.co/CHHhznEKXJ

— Josh Hawley (@HawleyMO) July 21, 2023

Categorization Issue

The union and steelmakers warn the Biden administration that if the policy proposal is finalized, it would hurt American domestic producers.

The industry and labor leaders are worried, particularly about the classification of the so-called photovoltaic trackers, which are systems orienting solar panels in the direction of the sun.

Their letter points out specifically that the proposal categorizes tracking systems under “manufactured products,” thus allowing Chinese imports of many structural components for solar power projects in the US.

They stress that by designating the trackers as “manufactured” items, those would be excluded from the requirement to use domestic steel.

The Treasury proposal comes under Biden’s Inflation Reduction Act, which offers trillions in tax cuts for supposedly green energy companies.

The Inflation Reduction Act of 2022 has spurred nearly $110 billion in U.S. clean-energy projects. The biggest beneficiaries so far are foreign companies. https://t.co/lIHFb3g428

— The Wall Street Journal (@WSJ) July 20, 2023