Would the Senate Health Care Bill Keep the Poor Poor?
Congressional leaders are weighing their options for moving the Senate‐passed health care overhaul through the House. That legislation would have the undesirable effect of discouraging low‐wage workers from climbing the economic ladder. A new Cato Institute study by Michael F. Cannon finds that implicit tax rates would often exceed 100 percent for low‐wage workers, which could trap millions of Americans in low‐wage jobs. Cannon also finds that the Senate bill creates incentives as large as $8,000 per year for people to purchase health insurance only when they are sick.