NOM BLOG

Obamacare's Marriage Penalties

 

At The Heritage Foundation's The Foundry blog, Chris Jacobs writes of "How Obamacare Discourages Work and Marriage."

Jacobs explains that " the law perpetuates some of the country’s worst trends that trap people in poverty. It includes disincentives for individuals to marry and for Americans of low and modest incomes to work."

The two marriage penalties included in Obamacare, "one for families with low and moderate incomes and another for families with higher incomes," are revealed by Jacobs by use of a concrete illustration:

PenalizedA 50-year-old non-smoker making $35,000 per year would qualify for a sizable insurance subsidy, according to the Kaiser Family Foundation’s insurance subsidy calculator. The individual’s premium would be capped at 9.5 percent of income, resulting in an insurance subsidy of $2,065 paid by the federal government.

However, if this 50-year-old is married to another 50-year-old who also makes $35,000 per year, the couple would receive no insurance subsidy at all. This couple would incur a marriage penalty of $4,130 in one year—equal to the $2,065 that each individual could have received if they were not married.

Click here to read Jacobs' full article.