The phase out of the subsidies for the purchase of health insurance will increase the implicit marginal tax rate on earnings for which of the following groups?
A) The elderly.
B) Individuals and families with incomes between 133 percent and 400 percent of the poverty level.
C) Individuals and families with incomes of more than 400 percent of the poverty level.
D) All workers employed by firms with fewer than 50 full-time employees.

Question

Quizplus · Accepted Answer

The phase-out of subsidies affects individuals and families with incomes between 133 percent and 400 percent of the poverty level, as they lose subsidy benefits as their income increases, effectively increasing their marginal tax rate.

The Phase Out of the Subsidies for the Purchase of Health