ObamaCare Clusterfuck: A worked example of how clawback works when the second spouse gets a job
Imagine this: You’re a hardworking head of a family of four getting by on a mere $40,000 a year. Your employer doesn’t provide health insurance, but you’re required by law to have it by Jan. 1. So you decide to sign up with the insurance exchange created under the Affordable Care Act.
When you get there, you’re pleasantly surprised. It turns out the entire family will receive good [for some definition of "good"] health care coverage and you’ll have to pay only a little more than $150 a month. The government will give you tax credits to pay for the rest.
What a deal! But you’re still not making enough to get by. So your wife takes a job at $30,000 a year. You’ve finally got your heads above water.
Until April 14 of the following year. Then you’re hit with a tax bill for almost $5,000. It turns out those tax credits are greatly reduced for rich people like you. Never mind that you don’t feel all that rich trying to get by on a mere $70,000 in a high-cost state like New Jersey. Uncle Sam still thinks you’re rich.
The author concludes:
That’s the real hidden tax in "Obamacare" — but even the Republicans have yet to figure it out.
I have to run -- and I must admit that I haven't checked these figures on a calculator (even if the calculators are all broken). However, there are times when it seems to me ObamaCare isn't even about health insurance; it's just about getting people into a compliance regime where they're reporting their income in much closer to real time. I mean, that's good data....