Inflation Reduction Act re-routes Medicare savings into tax credits for electric vehicles
The bulk of $280 billion in savings from the IRA's prescription drug provisions has been redirected to fund $7,500 tax credits on new electric vehicles and $4,000 tax credits on used electric vehicles, as well as other energy efficiency programs.
By Kevin Killough
Published: January 3, 2024 11:02pm
The Biden administration took an unprecedented step of rolling its climate agenda into a health care concern with the passage of the Inflation Reduction Act (IRA). According to critics, it makes climate change a priority. In both cases, they say, it’s not accomplishing anything with either goal.
Diverted funds
Medicare provisions within the IRA are siphoning funds into green energy policies, Isabelle Morales, federal affairs manager for Americans For Tax Reform, told Just The News. The IRA, Morales explained, grants the Secretary of Health and Human Services the ability to negotiate the price of prescription drugs on behalf of Medicare.
“The negotiation is basically, if a company doesn’t comply, they’re subject to 90% tax on all of their earnings. So, it’s really not a negotiation,” Morales said.
https://justthenews.com/politics-policy/energy/provisions-inflation-reduction-act-send-medicare-savings-tax-credits
