Instead of facing an exorbitant premium increase once their combined earnings hits $62,041 if they were to stay married, each cohabiting adult can earn up to $45,960 before Obamacare’s “tax credit”-free premiums kick in. Their annual after-tax savings at age 60 if they shack up and keep their individual earnings between $31,021 and $45,960 will range from $7,650 to over $11,000. The annual savings will slightly increase every year until Medicare kicks in at age 65. That kind of money can buy a lot of gifts for the grandkids.
But the grandkids will also face the prospect of seeing their moms and dads divorce because of Obamacare.
For an administration that’s gone “hell-bent for leather” for civil marriage for certain groups of people, they’ve come up with some real killer marriage penalties. In addition to this jewel from Obamacare (I recommend reading the entire piece) we have high rolling same-sex newlyweds (along with their opposite-sex counterparts) hit with this one from the “fiscal cliff” resolution.
In a sense, this is of a piece with the rest of the social welfare system, which has discouraged civil marriage for a long time. This is no small part of the explanation why lower-income people tend to shack up more.
But that may soon be in jeopardy too:
The law in many if not most states says that you can’t cohabit indefinitely and still claim not to be married.
Because the government will be starved for money, the Internal Revenue Service will task itself with finding cohabiting couples and divorced couples still living together who are “illegally” claiming that they are not married for health care subsidy purposes.
Question to readers: is his first statement true?
I’ve been an advocate for a long time of marriage without the state. In many parts of the world that’s illegal (France is one such place). In this country, however, that may start being the case, not because the state cares about stable, committed relationships, but because it’s only in it for the money. By then people may scream for the abolition of civil marriage, but it may be too late for even that.