Leading Japan based auto manufacturers Toyota Motor Corp. (TYO: 7203) and Honda Motor Corp. (TYO: 7267) have come out to vehemently oppose a proposal by Democrats in the United States House of Representatives which is seeking to add an extra $4,500 tax incentive to union-made electric vehicles in the United States.
The House of Representative is set to vote for the bill on September 14, there is a high likelihood that that the proposal will pass through since the Democrats control the house and are responsible for its introduction.
The bill was introduced as part of the wider proposed $3.5 trillion spending bill, the lawmakers argue the bill will benefit the three largest auto makers from Detroit.
It’s estimated the bill will cost around $33 billion to $34 billion for over 10 years and it will ramp up to $12,500 the maximum tax credit for electric vehicles up from the current $7,500.
In a public issued statement, Toyota says the bill discriminates against American workers based on their choice not to unionize.
On the other side, Honda terms the bill as unfair and it discriminates among electric vehicle manufactured by hardworking Americans autoworkers based on simply on whether they belong to a union.
Honda further said its production associates in Ohio, Alabama and Indiana who make its electric vehicles deserve fair and equal treatment by Congress.