Obamacare was put together by people who don’t understand economics.
This is probably the understatement of the year since I could be referring to many features of the bad law.
The higher tax burden on saving and investment, making an anti-growth tax system even worse.
The exacerbation of the third-party payer problem, which is the nation’s biggest healthcare problem.
The increased burden of government spending, worsening America’s entitlement crisis.
Those are all significant problems, but today I want to focus on how Obamacare encourages people to be less productive. And I’m going to use a rather unexpected source. The left-leaning San Francisco Chronicle has a financial advice column that inadvertently show how Obamacare discourages people from earning income.
The article nonchalantly explains that people may want to reduce their income so they can get more goodies from the government.
People whose 2014 income will be a little too high to get subsidized health insurance from Covered California next year should start thinking now about ways to lower it to increase their odds of getting the valuable tax subsidy. “If they can adjust (their income), they should,” says Karen Pollitz, a senior fellow with the Kaiser Family Foundation. “It’s not cheating, it’s allowed.” Under the Affordable Care Act, if your 2014 income is between 138 and 400 percent of poverty level for your household size, you can purchase health insurance on a state-run exchange (such as Covered California) and receive a federal tax subsidy to offset all or part of your premium. …getting below the 400 percent poverty limit could save many thousands of dollars per year.