Tuesday, January 12, 2010

huge marriage tax in the health care proposal

Probably and hopefully an unintended consequence, but quite troubling nonetheless-- from Phyllis Schlafly at TownHall.com...

Hidden in Obama's health care bill is a huge marriage penalty. Both the Senate and House bills would set up yet another federal program to provide financial incentives to subsidize marriage avoidance and illegitimate offspring.

Even though all evidence shows that marriage is the best remedy for poverty, lack of health care, domestic violence, child abuse and school dropouts, federal welfare programs continue to discriminate against marriage and instead give taxpayer handouts to those who reject marriage....

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...

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