Obamacare urges people to avoid getting a full-time job because they’ll take home more money by working fewer hours, according to a study.
The broader effect of the Affordable Care Act will be to reduce America’s work force by 4 million people, or 3 percent, the Mercatus Center, a libertarian think tank at George Mason University, says in the report.
“The ACA’s employment taxes create strong incentives to work less,” the study says. “The health subsidies’ structure will put millions in a position in which working part-time (29 hours or fewer, as defined by the ACA) will yield more disposable income than working their normal full-time schedule.”
President Barack Obama in 2010 enacted the law in the most significant overhaul of the U.S. healthcare system since Medicare and Medicaid were created in 1965. The goal was to cut the number of uninsured from an estimated 45 million people by using tax incentives, penalties and subsidies for medical coverage.
“The ACA imposes a $2,000 penalty for each full-time employee imposed on large employers (generally those with 50 or more workers) that do not offer health insurance,” Mercatus says. “Due to this penalty’s unfavorable tax treatment, it is effectively a $3,000 employment tax and can be expected to reduce full-time employment.”
Working more to make less will have an especially negative effect on women breadwinners, the study says.
“Women (regardless of marital status) are especially likely to reduce their hours to below 30 per week because they represent a greater percentage of those currently working 30 to 35 hours, and thus can drop to 29 hours with comparatively little cost,” Mercatus says.
Obamacare remains unpopular among Americans, according to polls rounded up by RealClearPolitics.
The latest survey shows 49 percent of people are against the law, while 39 percent favor it.
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