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Obama-Care Includes $11,000 ‘Marriage Penalty’

First, we have this from an op-ed in Wall Street Journal’s MarketWatch:

Will Obamacare hurt job creation and marriage?

By Diana Furchtgott-Roth | Sept. 27, 2013

… As well as effects on hiring, the subsidies in the Affordable Care Act, could increase the incentive to divorce and discourage marriage…

Under the Act, if workers have affordable single-family coverage from an employer — coverage that by law workers are obligated to accept — their family members will not be eligible for premium subsidies on the exchanges. This can make the cost of insurance for some low- or middle-income families unaffordable. But if they divorce, they get the subsidy.

Without subsidies, low-income families will not be able to afford to buy insurance on the state exchanges. The Internal Revenue Service estimates that family plans will cost $20,000 (in after-tax dollars) a year by 2016. Anyone under 400% of the poverty line, currently $94,000 for a family of four, qualifies for a subsidy — unless a family member has employer-provided insurance…

Perversely, the only way for other family members to get subsidized coverage would be for the spouses to get divorced. Then the spouse without coverage and the children could get coverage on the exchange.

This provision of the Act also discourages marriage. Say that Jeff, who receives health insurance from his employer, wants to marry Jenny, who is buying her subsidized health insurance from the state exchange. If they married, Jenny would no longer qualify for subsidized coverage.

Furthermore, since premium subsidies are on a sliding scale, two married people getting their coverage on the exchange would pay more than if they were single.

Those at 133% of the poverty line can pay no more than 3% of their income in premiums. Someone at 400% of the poverty line can pay no more than 9.5% of income. Two people making $32,000 annually would qualify for subsidies when single, but not when they got married and earned a combined income of $64,000…

This piece from CNS News breaks down the numbers even more:

Obamacare Provides $7,200 ‘Divorce Incentive,’ $11,000 for Older Couples

By Hans Bader | September 26, 2013

On the Obamacare health insurance exchanges, being married can cost you a lot.

Get divorced (or avoid getting married, if you live together), and you save $7,230 per year if you are a fairly typical 40-year-old couple with kids (example: the husband working full-time, and the wife working part time, with the husband making $70,000, and the wife making $23,000).

If you are a 60-year-old couple with equal incomes and no kids, and you make $62,041 a year, you save $11,028 a year by getting divorced or remaining unmarried. These are the amounts of money you will lose if you get married, since you will lose this amount of taxpayer subsidies due to Obamacare’s discriminatory treatment of married versus unmarried couples.

That’s the reality confirmed by an Obamacare "calculator" provided by the pro-Obamacare Kaiser Family Foundation showing how Obamacare’s "tax credits" work.

This calculator is not designed to make Obamacare look bad: Indeed, it has been touted by Obama’s own proxies at BarackObama.com, known as Organizing for Action: "In a September 13 email, Erin Hannigan of Organizing for Action’s ‘Truth Team’ bragged about" this "cool calculator" showing how Obamacare’s "tax credits" work, and encouraged everyone to "share it on Facebook or Twitter." …

Just wait until the ‘same sex’ marriage crowd hears about this. If they don’t get a special carve out, there is going to be hell to pay.

This article was posted by Steve on Monday, September 30th, 2013. Comments are currently closed.

2 Responses to “Obama-Care Includes $11,000 ‘Marriage Penalty’”

  1. GetBackJack says:

    Wa, wa, wa.waaaaaaa … jokes on you, AP. The one truism we should learn from Government is whatever they say, its opposite is true. Thus, the AFFORDABLE CARE ACT is really the You Can’t Afford It Act.

    The dominoes will fall .. as ObamaCare utterly fails in its rollout, doctors, hospitals and all related industry segments will be financially hammered in the rolling wave of despair and anger. People will still demand their health be looked after and our institutions will be quickly unable to stand up to the Congressionally mandated rules, regulations and f***ups – they’re managing the Post Office and all other agencies so well already – until this whole mess collapses into chaos.

    Good Luck, kids. See you on the other side.

    • Noyzmakr says:

      How many hundreds of thousands of people will die because the democrats wanted to pass this monstrosity against the will of the people, only because they were afraid of voting against a black man and figured it would cement their power with the permanent welfare class? May they all burn in the lake of fire forever!

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