There are many perverse incentives built into ObamaCare. Here’s one:
Middle class Americans who aren’t insured through their companies can buy heavily subsidized policies under the plan.
The problem is that as their incomes rise, the subsidies decline, giving them far less incentive to work more hours or stretch for raises.
For example, if the income for a family of four rises from $55,000 to $66,000, their contribution to their premium jumps from $4,400 to $6,600, erasing 22% of the $10,000 increase.
Source: Fortune, The best stimulus? Spend less, borrow less, June 24, 2010
http://money.cnn.com/2010/06/24/news/economy/stimulus_spending_cuts.fortune/index.htm
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Note:
Assuming that the $66,000 puts the family in the 15% tax bracket, it’s the equivalent of a 37% marginal tax … right up there with the rich folks.
Go figure …
