Kudlow: President Obama’s work trap
Published: Thursday, 6 Feb 2014 By: Larry Kudlow | “The Kudlow Report” Anchor
So let me get this right. Team Obama taxes millionaires who create jobs, while Obamacare creates incentives not to work at those jobs. No wonder recovery is so anemic. The policy here is to create fewer jobs and induce people to work less at those jobs. If my logic is correct, this runs counter to the most basic principles of our economy and our country.
In the Obama scheme, an industrious person climbing the ladder of opportunity is penalized heavily for his or her success. Health-care subsidies are reduced as a result of her higher income, while marginal tax rates go up as she shifts into a higher tax bracket. So she loses the government benefit and her effective federal tax climbs higher.
There is no ladder of opportunity here. It’s really a work trap that becomes a poverty trap. It’s similar to the other traps found in welfare, food stamps, unemployment compensation and the marriage penalty.
Democrats defend this work trap as providing more leisure time. But they forget to tell you that the perverse health-care incentives that lead to less work also lead to less income, less wealth, less opportunity and less economic freedom to prosper.
http://www.cnbc.com/id/101397361
America used to be the Land of the Free. Now its just the land of the freebie.
So let me get this right. Team Obama taxes millionaires who create jobs,
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Reminds me of the “Luxury Tax” under clinton. Concept was to tax new luxury yacht purchases, etc...as a result, sales collapsed, companies closed and employees lost jobs.