Wednesday, October 2, 2013

The poor pay the price for Obamacare

Such workers (earning roughly $800 per week when the work is full time) will see their marginal tax rates increase by an average of five percentage points between now and 2016, taking into account that many people will not take part in programs for which they are eligible for help. Before the Affordable Care Act, the compensation for each additional hour of work by a midwage worker was, on average, split 55 percent for the employee and 45 percent for the government (the government got its part by receiving more taxes from the employee, and paying fewer benefits, such as unemployment insurance payouts and food stamps, to the employee). Under the act, the split will be 50-50. NYT

This confirms Kevin Drum's back of the envelope calculation, the marginal tax on middle and lower middle income folks is arounf 5-15% as a result of Obamacare. This will be popular in California, the home of the middle and lower classes of America.

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