Archive for April, 2013

Obamacare Creates 860% Tax Bracket

April 18, 2013

California has a website that you can use to figure out if you qualify for a tax credit towards the new 2014 standardized health plans. Turns out for a family of 4 with a household income of $94,000 you get an $8304 tax credit (whose pretax value is about $11,000). If you make $1000 more, $95,000 per year, the credit is 0. So that means that $1000 in income cost you about $8,600 in taxes which is a 860% tax bracket. Wow. Living on the dole is starting to look more and more attractive even to people making $90K a year. Note to employers, educate your employees that they may actually be better off taking less income.