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Build Back Better's Hefty Penalties on Work
supply and demand (in that order) ^ | October 6, 2021 | Casey Mulligan

Posted on 10/06/2021 1:23:55 PM PDT by karpov

Largely by stepping toward an economy in which workers bear the burden of distributing healthcare and housing with little regard to ability or willingness to pay, the Build Back Better bill (BBB) would implement the single largest permanent increase in work disincentives since the income tax came into its own during World War II.

The bill would also reduce work by limiting competition in the labor market, imposing employer mandates, and increasing consumer prices for telecommunications, energy, and other products. All of these disincentives go on top of those already in the baseline due to a continuing portfolio of federal, state, and local tax, spending, and regulatory policies.

The implicit employment and income taxes in BBB would increase marginal tax rates on work by about 7 percentage points. I expect that such a change in the disincentive would reduce full-time equivalent employment by about 4.5%, or about 7 million jobs.

Penalizing Work and Hiring

The disincentives are delivered through two fundamental economic mechanisms. First and foremost is the creation and expansion of employment-tested benefits. Full-time employment is a major barrier to participating in the programs, even if that employment does not produce much income. Especially, BBB allows even America’s highest-income households to participate in subsidized “Obamacare” insurance plans as long as they are not engaged in any job that offers health insurance. For most full-time workers, their employment status by itself excludes them and their family from the additional Obamacare subsidies delivered through BBB, especially its sections 137501 and 137502.

(Excerpt) Read more at caseymulligan.blogspot.com ...


TOPICS: Business/Economy
KEYWORDS: employment; labor; mandates; obamacare; regulations

1 posted on 10/06/2021 1:23:55 PM PDT by karpov
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To: karpov

Build the Taliban back better...


2 posted on 10/06/2021 1:37:43 PM PDT by CMailBag
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To: karpov

If they pass that garbage, our economy will be completely destroyed.


3 posted on 10/06/2021 1:41:34 PM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: karpov

The Democrats own the voting process.


4 posted on 10/06/2021 1:56:44 PM PDT by arthurus (covfefe e)
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To: karpov

Bkmk


5 posted on 10/06/2021 2:02:46 PM PDT by sauropod
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To: karpov

666: 6uild 6ack 6etter

https://freerepublic.com/focus/f-chat/3992415/posts?page=269#269


6 posted on 10/06/2021 2:25:03 PM PDT by Kevmo (I’m immune from Covid since I don’t watch TV.🤗)
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To: Kevmo

I thought was panties. Hopefully not too big.


7 posted on 10/06/2021 2:39:16 PM PDT by DIRTYSECRET
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To: karpov

They are misusing the word build. Building requires work and lots of it.


8 posted on 10/06/2021 3:17:56 PM PDT by webheart (I thought I was helping by getting vaccinated but they say I didn’t help at all. )
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