Jim Roye
Jim Roye
Jul 25, 2017 · 1 min read

And if I’m right, what it would mean is that anyone who wanted to buy my $320 policy — whether they are incredibly wealthy or work a minimum wage job — would have to pay the full $320 a month that I pay up front. No monthly subsidies for anyone.

The issue you bring up is probably the least important factor of the whole debate. Anyone can talk to their employer and have their payroll tax withholdings reduced throughout the year to account for the credit. They’d have to do some math and figure out how much, but if you look at your payroll with holdings right now and know that you’d now qualify for a $4,000 tax credit, you can reduce the amount withheld by $154 in each bi-weekly paycheck through the year. Your net take-home pay would increase by $308 every month (and in one month during the year it would increase by $462) and your tax credit would come out in the wash when you file at the end of the year.

The subsidy vs. credit issue has a huge impact on people that don’t work at all. For the that do work, it just shifts the need to take action on it from the government to the individual.

    Jim Roye

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    Jim Roye