Democrats like their voters broke, stupid, and dependent.

The US government will force lower middle class Americans to earn less in order to qualify for valuable tax subsidies to pay for their Obamacare.

The San Francisco Chronicle reported, via TownHall:

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…

…To get a subsidy, the couple’s modified adjusted gross income for 2014 income would need to fall below $62,040, which is 400 percent of poverty for a family of two. …Proctor estimates that her 2014 household income will be $64,000, about $2,000 over the limit. If she and her husband could reduce their income to $62,000, they could get a tax subsidy of $1,207 per month to offset the purchase of health care on Covered California. That would reduce the price of a Kaiser Permanente bronze-level plan, similar to the replacement policy she was quoted, to $94 per month from $1,302 per month. Instead of paying more than $15,000 per year, the couple would pay about $1,100.

– See more at: http://www.thegatewaypundit.com/2013/10/figures-obamacare-will-force-many-americans-to-work-less-hours-to-qualify-for-subsidies/#sthash.HAHCviwx.dpuf

One has to wonder what the impact will be on the local economy as the local residence reduce their income to qualify for ObamaCare subsidies.  Will that be fewer dollars spend in local stores?  Your thoughts?

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About Russ Steele

Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.
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2 Responses to Democrats like their voters broke, stupid, and dependent.

  1. Dena says:

    Years ago the government dreamed up one of the most effective ways to control the states. They upped the federal taxes so the states could reduce their taxes by accepting federal money. The hook was in order to get this federal money, they had to follow federal laws, rules and regulations. Think I am wrong? Just think 55 mile per hour. That was tied to federal highway funds. Now the government has taken it to the personal level. You get government money for your insurance by getting a government approved insurance policy. It matters little if it’s the right policy for you, you are stuck with it. And by the way, this only applies to the poor who are growing in number by the day because the recession/depression still hasn’t been fixed and the insurance rules are reducing many people to part time workers. I have yet to see much good in this whole mess.

    in addition to higher taxes to support this program, insurance rates are going up. I have a health saving account and my deductible and insurance cost took a good sized jump about a month ago in order to be ready for the Obama care rollout. I haven’t looked into what it will do for my taxes but I suspect anything the government would give me back will be eaten up by the insurance bump.

    We need to stop having taxes withheld from our checks and go back to writing one check at the end of the year to pay our taxes. I am sure if people really thought of how much money we give the government over the period of a year, they would stop thinking the government should do everything.

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  2. sean2829 says:

    I think this is overstating the subsidy for someone who is close to the limit. If you go to the Kaiser Permanete subsidy calculator for California and put in a San Francisco zip code, you can put in $62,000 income and find there is a subsidy of only about $1200 per year and it comes as a tax rebate. So if a couple earn between $50 and 62K per year, they might find they have a very high marginal tax rate if they are on the public exchanges.
    Meanwhile, its worth looking at the “Real Wealth Re-Distribution” in an article by the WSJ, http://online.wsj.com/article/SB10001424052702303680404579141790296396688.html?mod=WSJ_Opinion_LEADTop
    A young person who buys individual insurance under the ACA on a public or a private exchange will see an additional $1000 per year of their income re-distributed to boomers so subsidize their insurance. That’s 3% of the income of a new college graduate making $33K per year (which is too much for any subsidy) that is added on the 12.7% of the payroll tax. That poor sucker is likely also paying pack student loans for the inflated tuition he had to pay because so much money was diverted to Medicaid.

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