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Thursday, February 6, 2014

Obama on Work Disincentives

Yesterday, CBO Director Doug Elmendorf testified about the Affordable Care Act:
By providing heavily subsidized health-insurance to people with very low income and withdrawing those subsidies as income rises, creates a disincentive for people to work, relative to what would have been the case in the absence of that act.
On December 4, 2013, President Obama said:
And it’s also true that some programs in the past, like welfare before it was reformed, were sometimes poorly designed, created disincentives to work.