Wednesday, October 31, 2012

Employees Pushed From Full Time Into Part Time Work By Obama's New Healthcare Law

From The Wall Street Journal, "David Gamage: ObamaCare's Costs to the Working Class: Perverse incentives will make part-time work more attractive than a better-paying full-time job." by David Gamage:
Consider a low-income American supporting a family of four deciding whether to take a part-time job that pays $36,000 a year or a full-time job that pays $42,000 a year. According to my research, accepting the higher-paying job could result in the family losing over $10,000 a year in health-care subsidies.

Moreover, by switching low-income employees to part-time positions, rather than offering them health insurance, an employer will be able to save over $3,000 a year by avoiding ObamaCare's employer-mandate penalties. Without further reforms, many employers and employees will jointly benefit if employers make low-income employees part-timers rather than offering them health insurance. The losers will be taxpayers, who will need to fund the subsidies that these employees will be eligible for.

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