Paul L. Caron
Dean


Monday, April 19, 2010

Marriage Penalties Increase Dramatically Under ObamaCare

Tax AnalystsDiana Furchtgott-Roth (Hudson Institute) has published Marriage Penalties Under the New Healthcare Law, 127 Tax Notes 349 (Apr. 19, 2010). Here is the abstract:

This article describes the marriage penalties in the new healthcare laws. ...  Single earners below 400% of the poverty line who receive premium credits to help them afford health insurance will see the credits shrink rapidly or disappear when they marry. Upper-income earners will face disincentives to marry and work based on the new Medicare taxes, which apply to singles earning $200,000 and joint filers earning $250,000.

For a bill that is supposed to make Americans healthier, the disincentives for marriage and work under the new healthcare law are truly startling. Beginning in 2013, when many of the bill's provisions take effect, Americans will find it more advantageous to stay single than to marry, even more so than under the current tax code. And women will face greater incentives to leave the workforce.

All Tax Analysts content is available through the LexisNexis® services.

https://taxprof.typepad.com/taxprof_blog/2010/04/marriage-penalties.html

Scholarship, Tax, Tax Analysts | Permalink

TrackBack URL for this entry:

https://www.typepad.com/services/trackback/6a00d8341c4eab53ef01347ff715cc970c

Listed below are links to weblogs that reference Marriage Penalties Increase Dramatically Under ObamaCare:

Comments

What are the incentives to leave the work force?

And what legitimate business does the tax code have in American's love lives anyways?

Posted by: Benjamin | Apr 19, 2010 6:58:56 AM

The marriage penalties in the Health Care Law were obvious, in both the House and Senate versions. But there are so many other defects and unworkable provisions that this one got little press. Besides, most of the press were cheerleading rather than critiquing the bills.

I am convinced that the primary purpose of the Health Care Law is to create such a huge set of problems that the public will reluctantly support a British-style system as the only escape. If I am correct, a large marriage penalty in the new law isn't a bug. It's a feature.

Posted by: AMTbuff | Apr 19, 2010 9:50:21 AM

What else would we expect?
Look what the Democrat's "Great Society" did to poor black families. What is the block illegitimacy rate again? Oh, that's right; it is racist to even ask the question (rolls eyes).

Posted by: EvilDave | Apr 19, 2010 10:27:03 AM

@EvilDave

right, because impoverished blacks were doing *so well* before LBJ came along and ruined everything for them...

Posted by: Benjamin | Apr 19, 2010 2:09:46 PM