The provisions of ObamaCare require every American to purchase a "qualified" healthcare insurance policy through a state government approved "exchange."
Because of all the coverage mandates in these qualified plans, premium costs will rise.
To mitigate backlash to higher costs, Obama and the Democrats installed premium subsidies based on income.
The poor at the lowest end of the income scale would be Medicaid eligible.
As household incomes rise the amount of the subsidy is reduced, and finally eliminated when a family earns $93,700 or more.
How about that for the statist's plan to make millions of families even more dependent on government redistribution of wealth?
Daniel Kessler, professor of business and law at Stanford and a Senior Fellow at the Hoover Institute, has done a detailed analysis of these provisions of ObamaCare and found that they will have dramatic consequences in the workplace and within our neighborhoods.
He predicts "sharp reductions in the supply of labor," and an "a reward to work of less than 20 cents on the dollar—in economists' language, an implicit marginal tax rate of over 80%."
So much for working hard and getting ahead.
Following are two key paragraphs from Kessler's guest op-ed in today's Wall Street Journal, and a link to the entire article:
"To phase out the subsidy smoothly for families with incomes of 134% to 400% of poverty, the law would have to take away $22,700 in subsidies as a family's income rose to $93,700 from $31,389. In other words, for every dollar earned in this income range, a family's subsidy would have to decline by 36 cents. On top of 25% federal income taxes, 5% state income taxes, and 15% Social Security taxes, this implies a reward to work of less than 20 cents on the dollar—in economists' language, an implicit marginal tax rate of over 80%. Although economists may differ on the effect of taxes on work effort, it is hard to fathom how anyone could argue that this will not reduce economic activity."
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