Old North News

A recent survey commissioned by the League of American Workers (LAW) indicates that a significant majority of North Carolina voters, 83 to 10 percent, are against the utilization of Medicare savings for green energy projects. This provision is part of the Inflation Reduction Act (IRA) passed in 2022.

The opposition also includes younger voters. According to the poll, voters aged between 18 and 34 reject this policy by a margin of 78 to 13 percent. The survey was carried out by North Star Opinion Research on behalf of LAW, an organization committed to conducting research and formulating proposals for public policies that affect American workers and the economy.

As per a report from Americans for Tax Reform (ATR), under the IRA's provisions, approximately $280 billion in savings from Medicare's prescription drug provisions were allocated to fund green energy programs and tax credits. These include a $7,500 tax credit for luxury electric vehicles (EVs), a $4,000 credit for pre-owned EVs, and an annual $1,200 credit for "energy efficient" doors and windows among others. ATR emphasized that Medicare savings were the primary source of revenue for the IRA. Instead of being used to lower prescription drug costs for enrollees, these funds were redirected towards green energy subsidies.

Healthcare industry expert Mark Merritt expressed his views in an op-ed published in The Wall Street Journal. He stated that Medicare will retain only about 15 percent of overall savings for some relatively inexpensive benefits. Merritt further noted that Medicare's costs are projected to rise significantly from around $1 trillion this year to an estimated $1.8 trillion in 2031. He also highlighted that typical buyers of Tesla EVs are half as old as Medicare enrollees and have an average income of about $150,000 per year. In contrast, Medicare enrollees typically earn less than $30,000 per year. While prospective Tesla buyers could enjoy up to $7,500 in subsidies under the IRA, Medicare enrollees typically spend almost that amount, or about $6,500, per year on out-of-pocket health costs alone.

On the anniversary of the IRA's passage last year, the White House lauded President Biden's Inflation Reduction Act for "driving historic climate action" and highlighted its impact on helping the United States meet its climate goals. According to a White House Fact Sheet, the IRA was promoted as the "largest investment in clean energy and climate action ever."

However, as reported by the Washington Examiner, President Biden expressed regret over the name given to the IRA at a fundraiser in 2023. He said: "I wish I hadn't called it that because it has less to do with reducing inflation than it does to do with dealing with providing for alternatives that generate economic growth."