Obamacare: Making not working pay

Published February 5, 2014 5:00am ET



The nonpartisan Congressional Budget Office released a dirty secret about Obamacare this week: Depending on your income level, it might prompt you to reduce your hours or even seek a pay cut.

Obamacare’s subsidies for purchasing health insurance phase out as income increases — in some cases diving off a cliff when you reach a certain income level. Thus, you might find yourself financially better off if you’re earning less or working fewer hours — or at least, barely better off for working or earning more. Taking a better-paying job with health insurance might not be worth it at all. We thought we had squeezed such punishments for hard work and diligence out of our welfare system two decades ago. Now Obamacare has expanded them to the middle class.

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