鲍尔森表示：Abolishing the current Clean Energy Tax Reduction Policy in the existing 'Inflation Reduction Act' could increase tax revenue by approximately $921 billion over a decade. For Asian giants such as Toyota and Hyundai engaged in electric vehicles, wind power, and other renewable energy industries, President Trump and his allies' plan to abolish the Clean Energy Tax Reduction Policy would harm their financial condition and reduce the attractiveness of the USA market.
Billionaire investor and hedge fund veteran John Paulson, in an interview reported by The Wall Street Journal on the 29th, stated that if he were to serve as the US Treasury Secretary during Trump's second term, he would cooperate with Musk to significantly reduce federal spending.
Paulson said his top priority would be to extend the 'Tax Cuts and Jobs Act' enacted by Trump in 2017 and set to expire in 2025, followed by 'cooperating with Musk to cut federal spending,' especially by cancelling green energy subsidies in the 'Inflation Reduction Act'.
Paulson stated:
"All tax subsidies for inefficient and uneconomical energy sources such as solar and wind energy should be cancelled, which will reduce expenditures."
"Encourage energy production and let us become a dominant energy-producing country."
In 2022, US President Biden signed the 'Inflation Reduction Act' to stimulate the economy, involving significant tax credits in areas such as purchasing electric cars, renewable energy, hydrogen, and nuclear energy. According to the Tax Foundation's data, abolishing the clean energy tax cuts policy could increase tax revenue by approximately $921 billion over ten years.
For reference, data from the Congressional Budget Office (CBO) shows that the total expenditure of the US federal government in the previous fiscal year was 6.75 trillion.
Elon Musk stated this week that he could push for a reduction of at least $2 trillion in federal spending budgets, but did not specify the specific actions. Trump has also previously stated that if elected President of the USA, he would have Musk lead a new "Government Efficiency Committee" to help reduce federal spending.
According to sources familiar with the matter who spoke to The Wall Street Journal, the 68-year-old Paulson is one of the candidates being considered for the position of Treasury Secretary by the Trump team, due to his close relationship with Trump over the years and ongoing involvement in Republican political activities.
It is worth noting that the approval of any tax provisions in the Abolition of Inflation Reduction Act still requires congressional approval.
In the past two years, encouraged by the Inflation Reduction Act, leading companies in industries such as Toyota Motor, Hyundai Motor, Taiwan Semiconductor, Samsung Electronics, etc., have actively expanded their businesses in the USA. UN Conference on Trade and Development data shows that since 2021, the new greenfield investments announced annually in the USA have exceeded $110 billion, with a total investment of $147 billion over three years from Japan, South Korea, and Taiwan, China.
For Asian giants involved in industries such as electric vehicles, wind power, etc., the plan of Trump and his allies to abolish clean energy tax reduction policies will harm their financial situation and reduce the attractiveness of the USA market.
In the second-quarter financial report announced in July, LG Energy stated that considering Trump’s possible repeal of tax incentives for electric vehicles, they significantly lowered their annual sales guidance.
