We have seen the future, and it sucks.

Average Marginal Labor Income Tax Rates under the Affordable Care Act

3rd September 2013

Read it.

The Affordable Care Act includes four significant, permanent, implicit unemployment assistance programs, plus various implicit subsidies for underemployment. Every sector of the economy, and about half of nonelderly adults, is directly affected by at least one of those provisions. This paper calculates the ACA’s impact on the average reward to working among nonelderly household heads and spouses. The law increases marginal tax rates by an average of five percentage points (of employee compensation), on top of the marginal tax rates that were already present before the it went into effect. The ACA’s addition to labor tax wedges is roughly equivalent to doubling both employer and employee payroll tax rates for half of the population.

Increase taxes will make things more affordable! Of course! Why couldn’t we see that?

2 Responses to “Average Marginal Labor Income Tax Rates under the Affordable Care Act”

  1. Dennis Nagle Says:

    Death Panels. It’s the only viable economic option.

  2. Tim of Angle Says:

    Fine. You first.