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October 13, 2013 - 10:08 am
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The San Francisco Chronicle published an article yesterday about how to take advantage of federal Obamacare subsidies, with the ominous headline “Lower 2014 income can net huge health care subsidy.”

The author, Kathleen Pender, correctly points out that there is now a huge and abrupt “cliff” in health care costs for many Americans: earn $1 more than the prescribed limit for being on the federal health-subsidy dole, and you’ll have to pay many thousands — even tens of thousands — of dollars more next year for health insurance than you would otherwise. So obviously the smart thing to do would be to find ways to “lower your income.”

After recommending a few accounting tricks (but also noting that most standard tricks won’t work), on page 2 of the article Pender gets to the point:

“You can also consider reducing your 2014 income by working just a bit less.”

This, right here, is the toxic essence of the welfare state. It’s already been proven over and over that for the lower classes, welfare incentivizes permanent dependence: Since one gets more money receiving a raft of federal entitlements than one would get earning a salary at a low-level job, it’s a rational economic decision to remain unemployed, on purpose. Which millions of Americans do, generation after generation, creating a permanent underclass that only consumes the common treasury without ever contributing anything to it.

What Obamacare does, as demonstrated by this eye-opening article, is bring the same economic disincentive to the middle class: It is now a rational economic decision for the average American to earn less money. And to earn less you must work less, and when you work less, you contribute less to the common good.

With people intentionally contributing less to the common good, there will be less federal money available to finance the subsidies (which are fiscally unaffordable even without this problem), leading to an unavoidable downward economic spiral for the entire nation.

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Top Rated Comments   
So, if your income is between $63,000 and $76,000 you wasted your time because you ended up with not a dime more at the end of the year at best and $14,000 less at worst. Disincentive to get a raise or improve yourself because it COSTS you money. That is just wrong.
48 weeks ago
48 weeks ago Link To Comment
Obamacare: US' steady march to the wonderful world of genteel poverty now experienced by the Eurozone.
48 weeks ago
48 weeks ago Link To Comment
And, this is why all socialist ecomonies inevitably fail. They punish the successful and teach everyone to game the system. Pretty soon, no one is available to punish enough to pay for the system. Too bad America is already at that point.
49 weeks ago
49 weeks ago Link To Comment
All Comments   (37)
All Comments   (37)
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ObamaCare is communism - Affordable is defined by FedGov based on your income. It is arbitrary and has nothing to do with "affordability" - it is a dictate. Also ObamaCare will be controlled by whoever is Secretary of HHS (the largest single component of FedGov btw). There will be a HUGE increase in the black market cash economy - this is standard operating procedure in countries like Italy where over a third of employment is "under the table". ObamaCare is dangerous enough to justify a shooting war - it is the lock on the jail cell for the citizens of the U.S. If it moves forward by 2025 this country will be in the process of breaking into separate sections. It will generally be the cities versus the rest of us. It's coming - I used to put it into the 2030s but it will begin in the 2020s.
48 weeks ago
48 weeks ago Link To Comment
What this does is also create an underground economy in which thousands of people work for cash, getting paid "under the table". The cash flow benefits the economy to some extent, but state and federal income from taxes is decreased. Soviet economists must have figured this out at some point. For small jobs, it is easy not to get caught.
48 weeks ago
48 weeks ago Link To Comment
The solution to all these problems begins with voting. The perfect candidate doesn't exist. Settle for the end of obamacare and those same legislators will do a lot to end these other bloodsucking activities.
48 weeks ago
48 weeks ago Link To Comment
A lot of people are not going to be given the choice as to how much they will be "allowed" to work. Thanks to Obamacare's employer mandate, it makes a great deal of economic sense to have nothing but part time and temporary workers.
48 weeks ago
48 weeks ago Link To Comment
and when we will stop calling the money to others subsidized as if there is not cost to others for this subsidizing this benefit.


And then again what can one expect from an affirmative action hire, who by his own words is an unpatriotic, irresponsible, failure.

And if he weren't half black, black leaders have already said they would be marching on the White House in protest, but because black leaders worship the altar of skin color they will sacrifice a generation of their children to support this failure.
48 weeks ago
48 weeks ago Link To Comment
"With people intentionally contributing less to the common good, there will be less federal money available to finance the subsidies (which are fiscally unaffordable even without this problem), leading to an unavoidable downward economic spiral for the entire nation."

What, facts, logic and reason? You realize that if a liberal reads this, it's considered a hate crime?
48 weeks ago
48 weeks ago Link To Comment
after reading Enjoy the Decline, I am considering it.
48 weeks ago
48 weeks ago Link To Comment
Anyone who thinks Obamacare was designed to provide universal health care is delusional.

It was designed to a) provide political pay-outs to Democrat supporters, like trial lawyers (how can you have health care "reform" if you don't have tort reform?) and b) guarantee Democratic voting blocs by bribing them with other people's money.
48 weeks ago
48 weeks ago Link To Comment
And how does an employed person go about working less? Go to their employer and tell them that they're just going to not show up for a few weeks? You're going to work less only if your employer lets you work less. Unless of course you don't want to work at all, which is what is going to happen if you say you are going to "work less."
48 weeks ago
48 weeks ago Link To Comment
The Bay Area has the largest percentage of self-employed people, piecemeal workers and (for lack of a better term) "loosely employed" people of any region in the country, so the writer assumed (correctly) that a large percentage of her readers CAN at least partly determine how much they earn each year. I'm one of those people myself, in fact: The more hours I put in, and the more effort I expend, the more I will get paid; but the amount of how much time and effort I expend is pretty much entirely up to me.

Yes, we of course have plenty of people who work 9-5 for a set salary, but you'd be surprised at the number of people who have some other arrangement.
48 weeks ago
48 weeks ago Link To Comment
So for someone like you, there is an added incentive to lie about your income to keep it below the threshold of the healthcare subsidy. This means more people will want to work in a "cash only" or barter environment. It is just human nature that the more government intrudes in our life, the more we seek shelter from its intrusion.
48 weeks ago
48 weeks ago Link To Comment
Let's say your a married couple with 2 kids. Hubby and Wife work, own their home with a mortgage and each have a car with a car payment. Okay? So here's the plan:

File for an amicable divorce, hubby gets the house, wife gets the kids. Wife quits her job and signs up for all the government benefits available to a single mother. She rents the house from Hubby, and Section 8 pays the rent, which covers the mortage and at least one car payment. Food stamps and other cash assistance programs cover all the groceries. Other programs supply free electricity, cable, gas, water, etc. Obamacare supplies free healthcare for wife and kids.

Hubby continues to work (and live with family) and his Obamacare premiums are about the same for a single person as what he used to pay for family coverage. The rest of his salary is devoted to what is left of the second car payment and disposable income. Overall, the family budget has improved dramatically and lavish vacations become the norm.
48 weeks ago
48 weeks ago Link To Comment
You've just described the strategy that creates the welfare state. The "War on Poverty" targeted the poor by splitting up families, allowing the creation of a permanently dependent underclass. Obamacare will do the same thing, only now it's aimed at that last bastion of resistance: the beating heart of the middle class. In their own perverse way, Obama, Harry Reid and Nancy Pelosi are warning us about this every time they vow to "help" the middle class.
48 weeks ago
48 weeks ago Link To Comment
Meanwhile wife figures, hey, I'm not married. So what's to keep me from having sex with a bunch of other men? It's not like I'm cheating or anything. While that's happening, the government comes after husband demanding that he compensate the government for all the benefits that are being paid out, threatening him with jail if he doesn't pay up.
48 weeks ago
48 weeks ago Link To Comment
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