1/12/2010

The Marriage Penalty in the Health Care Bill

It is pretty clear that there is a lot of redistribution going on in the health care bill. Phyllis Schlafly on the marriage penalty:

Here is the cost in the House bill for an unmarried couple who each earn $25,000 a year (total: $50,000). When they both buy health insurance (which will be mandatory), the combined premiums they pay will be capped at $3,076 a year.

But if the couple gets married and has the same combined income of $50,000, they will pay annual premiums up to a cap of $5,160 a year. That means they have to fork over a marriage penalty of $2,084.

The marriage penalty is the result of the fact that government subsidies for buying health insurance are pegged to the federal poverty guidelines. Couples that remain unmarried are rewarded with a separate health care subsidy for each income.

When the Wall Street Journal reporter quizzed the Democratic authors of the health-care bill, they made it clear that this differential was deliberate. The staffer justified the discriminatory treatment because "you have to decide what your goals are." . . .

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