Sep 28, 2015

VW’s Fraudulent Emissions Information Cost American Taxpayers $51 Million

Post by Freedom Partners

Environmental groups are not the only ones that should be up in arms over the recent discovery that Volkswagen has been falsifying emissions tests for several of its diesel vehicles since 2009, making them appear more environmentally friendly.

American taxpayers, through a green energy tax subsidy available to purchasers of these vehicles, have shelled out up to $51 million in fraudulent subsidies.

Taxpayers should be upset with Volkswagen for engaging in fraud. But they should also be upset with the federal government for its willingness to funnel taxpayer dollars into favored industries and companies while failing to institute oversight or accountability measures to make sure the subsidies were achieving their intended outcome.

Washington politicians and bureaucrats have no business picking winners and losers in the automotive industry—or any other industry. Subsidies not only create distortions in the market, but examples like the recent Volkswagen fraud show just how unqualified the federal government is to decide where in the economy to invest taxpayer dollars.