The Obamacare Tax Hike No One Is Talking About

The Obamacare Tax Hike No One Is Talking About

In at least one way, Mitt Romney was right that healthcare reform in Massachusetts is nothing like the Affordable Care Act. The work disincentives in Obamacare are far worse. There are high implicit taxes linked to its income-based subsidies (to reduce premiums and out-of-pockets costs) for people in households with income in or near the 100-400% range of the federal poverty line. The more that working reduces the net of tax value of available benefits from a particular program, the more that program reduced the reward to working. Shorter: The less you work, the bigger the sliding-scale subsidies.

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