The Patient CARE Act, put forward by Senators Hatch, Burr, and Coburn, continues to attract attention. While it has many merits, it also suffers from one of the same drawbacks as Obamacare. The CARE Act would institute changes to marginal-income tax rates that would increase disincentives to work for many, especially those in prime earning years.
This is not unique to the CARE Act. It is a characteristic of the American welfare state. Economists describe these as “notches” or “cliffs”, and Obamacare is stuffed with them.
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