Greg Mankiw writes about healthcare costs and Obamacare here and includes this in an Addendum. It is one of the funniest things I have read on the Internet in a long time:
“The Times story, particularly the graphic, suggests that the implicit marginal tax rate some people face under the Affordable Care Act subsidies can sometimes exceed 100 percent. It is hard to believe that the law is so badly written as to have this feature, but that seems to be the implication.”
I am not trying to make fun of Professor Mankiw, who is a very smart economist and teacher. It is, however, what happens when an intelligent person who understands government and economics meets a law passed by people so smart that they don’t understand government and economics.
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