Old North News

Steve Cortes, founder and president of the League of American Workers (LAW), stated that President Joe Biden is "chasing radical electric vehicle boondoggles" at the cost of hardworking Americans through the Inflation Reduction Act's (IRA) allocation of Medicare savings for green energy projects.

"Instead of focusing on unleashing the film power of American energy, Biden insists on chasing radical electric vehicle boondoggles," said Cortes. "Biden's wasteful EV subsidies try to force unwilling consumers to choose cars they don't want. Plus, this kind of exorbitant spending drives up overall inflation, spreading economic misery."

The conservative advocacy group, Americans for Tax Reform (ATR), reported that under the provisions of the IRA, approximately $280 billion in savings from Medicare's prescription drug provisions were allocated to fund green energy programs and tax credits. These included 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 noted that Medicare savings were the primary revenue source for the IRA. Instead of being used to reduce prescription drug costs for enrollees, these funds were diverted towards green energy subsidies.

Mark Merritt, a healthcare industry expert, noted in a Wall Street Journal op-ed that Medicare's costs are projected to nearly double to an estimated $1.8 trillion in 2031. Merritt also highlighted that while typical Tesla EV purchasers are half as old as Medicare enrollees and have an average income of about $150,000 per year, Medicare enrollees usually earn under $30,000 per year. While Tesla buyers could enjoy up to $7,500 in subsidies under the IRA, Medicare enrollees typically spend about $6,500 per year just on out-of-pocket health costs.

According to a recent poll commissioned by LAW, an overwhelming majority of North Carolina voters oppose the use of Medicare savings for green energy projects by a margin of 83 to 10 percent. Among younger voters aged 18 to 34 years old, the margin of opposition was 78 to 13 percent. The survey was conducted by North Star Opinion Research on behalf of LAW.

Cortes, who founded LAW in 2022 with the mission of promoting "policies to protect the priorities of laborers," was a spokesman and advisor to President Donald Trump’s 2016 and 2020 campaigns. He previously traded global currencies and interest rates for 25 years for large international hedge funds. He has been an on-air broadcaster for CNBC, Fox News, and CNN.