…Writing in the Wall Street Journal, Mark Merritt, president of Proactive Strategies Group, said that only about 15% of the $280 billion in savings from the program goes into Medicare. The bulk of the savings, Merritt explained, are going to support the $7,500 electric-vehicle tax credit.
Morales said the siphoned funds are also supporting the $4,000 used electric-vehicle tax credit, and tax credits for energy efficiency items, such as doors. The tax credits on these vehicles, Merritt said, are items that wealthier Americans purchase. In 2019, half of those enrolled in Medicare earn less than $30,000 per year, whereas the typical Tesla buyer earns around $150,000 per year.
According to Merritt, the savings that go into Medicare pay for some “relatively inexpensive new benefits,” such as a $2,000 annual cap on pharmacy spending. The overall Medicare program’s budget is projected to rise from $1 trillion in 2023 to $1.8 trillion in 2031.
