Andrew Bates’ Memo Highlights Potential Economic Fallout Of McCarthy’s Proposal To Repeal Clean Energy Tax Credits

“Let me kill over 100,000 manufacturing jobs – mostly in red states – or I’ll force America to default on bills we racked up and trigger a recession,” is the opposite of a compelling message.

Yesterday, Speaker McCarthy unveiled his ransom demands for not triggering a catastrophic default and sending the U.S. economy into a needless, unprecedented tailspin that kills millions of jobs. It’s a 320-page plan that would take a two-by-four – on behalf of China – to America’s manufacturing resurgence by repealing the Inflation Reduction Act’s clean energy tax credits. 

President Biden’s Inflation Reduction Act is bringing manufacturing jobs back home, with over 100,000 American manufacturing jobs and over tens of billions of dollars in private sector investments announced since the President signed the historic legislation. Multiple independent studies show many of these jobs are flowing to Republican states – and Republican congressional districts.

Last year, Bloomberg reported that “most of these projects — and the jobs that come with them — are in traditionally conservative states.”

In February, CNBC reported that “most of the jobs are located in Arizona, Georgia, Michigan, Ohio, South Carolina, Tennessee and Texas.”

And the Guardian reported: “Republican-leaning states receive larger climate investments per person from the Inflation Reduction Act.”

The Speaker’s proposed plan would repeal the Inflation Reduction Act’s investments in manufacturing and cheaper energy, which would offshore American manufacturing, kill tens of thousands of manufacturing jobs, undermine American energy security, and raise Americans’ utility bills — all to provide a tax giveaway to rich special interests.

It also raises a crucial question for dozens of House Republicans: will they vote to kill manufacturing jobs in their own home districts, and reverse the reshoring of manufacturing from China?

• Will Rep. Marjorie Taylor Green vote to eliminate the investments helping to create 2,500 solar manufacturing jobs in her district? 
• Will Rep. Joe Wilson vote to rip tax credits away from a $2 billion EV manufacturing investment in his district?
• Will Rep. Mike Carey risk the more than 2,000 EV investment-related jobs coming to his district?

Killing newly-created American manufacturing jobs just so the super wealthy and big corporations can enjoy tax welfare would be a gut-punch to America’s competitiveness and to thousands of working families in red states.

These House Republicans (and many of their colleagues) need to be asked whether they support Speaker McCarthy’s drive to kill manufacturing jobs in their own backyards.

Rep. Marjorie Taylor Green (GA-14): Qcells: $2.5 billion solar manufacturing
Rep, Barry Loudermilk (GA-11) Qcells: $2.5 billion solar manufacturing, Hyundai/SK: $4.5 billion battery manufacturing

Rep. Drew Ferguson (GA-03): Freyr/Koch: $2.6 billion battery manufacturing

Rep. Joe Wilson (SC-02): Scout Motors: $2 billion EV manufacturing

Rep. Ralph Norman (SC-05): Albemarle: $1.3 billion lithium processing  – Rep. Ralph Norman (SC-05)

Rep. Mark Green (TN-07):  LG: $3.2 billion battery material processing

Rep. Mike Carey (OH-15): Honda/LG: $3.5 billion battery manufacturing

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Andrew Bates is the White House Deputy Press Secretary and Senior Communications Adviser.

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