Obamacare Will Penalize You if You Make “Too Much Money”

One of the main consequences of “taxing the rich,” especially when what is considered “rich” keeps getting lower and lower, is that it penalizes success. You can’t make “too much money,” or else you’ll have to pay more in taxes. So, it’s best if you just stay below “rich” tax bracket and not try to do any better.

Not surprisingly, Obamacare has the same effect. If you make more than 400% of the federal poverty limit (FPL), which varies by household size, even by $1, you will no longer be eligible for a government subsidy to purchase health insurance, and you’ll be on your own.


Household Size

400% FPL

Premium Cap

1 (Single)



2 (Couple)










Under Obamacare’s rules, as long as you’re within 400% of the FPL, you won’t be required to pay more than 9.5% of your income toward health insurance. The subsidy will pick up the difference.

But as soon as you make just over 400% of the FPL, you’ll no longer be eligible for the subsidy, and you’ll have to pay the entire premium yourself, leaving you with less money by the end of the year, even though your income is higher.

Here’s an example taken from ValuePenguin.com:

 “The monthly premium for the silver policy for two 50 year olds living in Connecticut is $1,039, or $12,468 dollars annually. Under the ACA, if this couple makes under $62,040, they would benefit from having their premiums capped at $5,893, yielding a savings of $6,575 (subsidized federally). $62,040 - $5,893 = $56,147, post health insurance income. If this same couple earns more than the $62,040 amount, then they would lose the $6,575 of federal subsidies and find themselves that much worse off. In fact, this same couple would need to earn $68,615 to find themselves at the same take-home income post insurance that they had at $62,040.”

In effect, this will disincentivize people to be more successful, to work overtime or to get raises, for fear that they would end up with less money than they would have had, had they remained under their government mandated income threshold. Is there anyone that still believes Obamacare is about taking care of everyone and providing everyone with health insurance? It’s been about power and control from the beginning.



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  • carolchristine

    People just do not have any idea what is in this bill. They should know before 2014 midterm elections. So why don't the Republicans get out there in their home and let them know what is in it, Or don't they care?

    • Screeminmeeme

      Good question.

      I think the one of the many things that Republicans have failed to do is to take advantage of technology and its ability to inform huge masses of people in seconds, like the left does. They need to be using all media forms to talk constantly about the horrors of Obamacare.............repeat, repeat, repeat.

      • DWinch

        The problem is, too many republicans want what the democrats want, a fat bloodsucking bloated government.

    • monkeypox69

      Re-pube-lickins are a bunch of idiots running around with their heads up their ass. Totally worthless. As as the Commiecrats.

    • netandyawho

      All RINO Republicans are communists just like the vast majority of Democrats. Instead of being looked at as 'Brown Nosers' to the Democrats, they need to be looked at as 'Brown Horners'. Just look at John McCain and you will see what I mean.

    • Voncent

      Alot of Federal employees (HOR, Senate, staffers, DC employees) are EXEMPT! If you are an illegal immigrant or an incarcerated felon, you are EXEMPT! This is why the Republicans do not give a rats tail about anyone's suffering. They have pensions and perks and benefits that most of us will never have! State and federal lawmakers have exempted themselves from their own legislation....

    • 7papa7

      I like the way they put it. If you make to much money. Under the obama administration their is absolutely no fear of that ever happening.

  • MikeW

    Tell everyone you know to stop supporting the MSM in any way and to get their news from the Blaze. We desperately need to continue reducing the influence of the MSM, rather it be print or TV, so that the low information voter will not be so easily mislead. More people need to know what is really going on!

    • DontTreadOnMe11

      I'm pretty well informed and do not have the Blaze. If people WANT to be informed they will get informed.

  • DWinch

    Equal misery for all! So that's what hope and change means.

    • monkeypox69

      That's what Socialism means.

      • netandyawho

        Lets take it one step further down the staircase and call it what it is going to be: COMMUNISM!

        • carolchristine

          You are absolutely correct. Everyone is afraid to say the word so they so "Socialism" instead. It does not sound so frightening, I guess.

        • netandyawho

          Actually, the new updated code word for Communism is Progressivism. Remember the last election. The liberal in words were "Progress and Progressive".

    • hmmathis

      No, not equal misery for all--equal misery for the "proleteriat", but not for the Democrat "elites" running the country.

  • monkeypox69

    Ovomit's race to the bottom...

  • Proudamerican

    Too much money? by who's opinion? dems? Hey America you make too much money so WE(dems/libs/commies) have decided to take it from you to give to someone else for votes? Heck you cant even kill one of them and get relief! They will still vote dem after they are buried! Self appointed pick pockets is all these a**holes are!

    • DWinch

      Not a problem, when they get done with us, none of us will make too much money!
      You would think that medical science could come up with a shot that would cure democrats. I know Remington & Colt did.

      • Proudamerican

        HAHA-and that will be the shot needed to cure us of this dem cancer! You can take it to the bank that they will not just suddenly realize the error of their ways and change-they will have to be MADE to cease and desist their lying and stealing ways.

        • Marlin208

          Death would help the situation also.

  • Donald York

    Crooked politicians head to the nursing homes just before there is to be an election, knowing very well that a lot of these seniors will be easily brainwashed, and will vote for whomever offer them a kind word. Obamacare, when(and IF) it is fully implemented will wipe out what savings these folks worked a lifetime for their well being.

    • Marlin208

      And the administration knows it.

      • Karl Dulaff

        That's the plan.

  • crankyoldone

    Haha all you AFL-CIO members that "believed" and supported this crap ! Take that B.A.R.T. members who are demanding a 23% pay raise . It will all go to the I.R.S. . Hahahahahahah

  • http://www.fortuneteller43.blogspot.com/2013_12_18_archive.html Thomas M. Koller

    If I make too much money, I wouldn't need ObamaCare.

    • cliffojm

      The challenge is finding employment that will allow you to make enough to make Obamacare irrelevant. In this economy, good luck with that!

      • Rubygirl

        Doesn't matter how much you make, obamacare demands you carry health insurance. It's just if you make more than the scaled down wages, you have to pay it all on your own or HOPE your employer provides it for you. And Your private premiums are going to jump sky high. Some employer premiums have already doubled and tripled. Of course, your employer is going to have to pass some of that cost on to you re payroll deductions because the Employer won't be able to afford the higher premiums to provide employee insurance.

        But, gee, it's really okay with obama and Congress. They are all set for life because they are exempted from obamacare. Don't you just LOVE laws written by people who don't have to abide by them. Such "fairness' just makes me warm and fuzzy all over! ,

  • dntmkmecomoverther

    Socialism always does this: induces the slothful, to remain so; and for the thrifty and productive, to stop being so. This obummercare will be the death of this Republic. I do hope we can stop it somehow; I love this country...but I am learning to disdain its current leaders...dems and repubs alike.

  • Traditionist

    Many people earned their independence as a human being in their teens and never had to rely on someone else for support. They did not expect any and gave to charities to help those in need. This country did allow people to make their own fortune but our politicians have removed this with socialism. If they continue to elect these political liberal sub humans and draw welfare as an expected income I hope they suffer a short life.

  • TBI

    This has been his goal all along, take working white man's money and waste it on worthless brown people. His new downsized middle class ends at 62k, you are wealthy after that. (exception to all union and Government workers)

    • louluna

      You mean Black

      • MrLogical

        It doesn't matter what color they are. Black, white, brown, yellow. Slothful people come in all colors, shapes and sizes. Anyone who cannot or will not work to support themselves and their families.

        • Marlin208

          I don't care what color they are, I don't want them looking into my finances and medical records.
          What do you all think is going to happen when they can remove money from your accounts in addition to all they get from the government.
          Just try and prove who did it and just try and get it back.

        • MrLogical

          Welcome to Komrade Obama's world. You will have no privacy, and everything you have will belong to the State.

        • Karl Dulaff

          Skin color makes a BIG difference to liberals. White is always bad.

  • allen goldberg

    This is exactly why GOVERNMENT should not be allowed to get involved in real world situations like this. Stick to their mandate in the constitution, and remove anything else they are involved in..the people in government are far too stupid to understand

    • Marlin208

      Oh, this administration knows exactly what it is doing to the country it hates.

      • carolchristine

        We need to get Boehner and Mitch Mcconnel, Cantor, McCain, Lamar Alexander, and all of the rest of the (wanna Be Democrats) along with Karl Rove out of the Republican Party and bring it back to what is supposed to stand for.

  • kyrunner

    Obama is reaching his goal of fundamentally transforming this nation into a federal government controlled and planned dictatorial type run economy. That way he can spread the misery around to EVERY American therefore destroying every incentive to try and improve your self. He wants EVERYONE dependent on the federal government for EVERYTHING.

    • carolchristine

      He wants Communism. I truly believe this. If anyone would read the background of his mother and grandparents. Also his friendships with Bill Ayers and so any others are very telling as to who he is.

  • MrLogical

    This is Communism - pure and simple. Income and wealth redistribution. Give money to people who cannot or will not work by taking it from people who can and do.

    The next phase of Obama's "fairness" crusade? A wealth tax. Add up all of your net worth - house, cars, property, savings, retirement accounts, checking accounts, cash, jewelry, etc. - and then the government will tax you on a progressive scale. The more assets and wealth you have, the higher the tax rate.

    The 2014 mid-term elections are vital if we want to stop this tide of creeping Communism. No more Democrat enablers for Obama and like-minded Democrat governors and mayors (Democrats are just closet Commies), even if they're only running for dog catcher.

    No more Dem' presidents, senators, representatives, governors, mayors, city council members, town officials, county commissioners ... dog catchers. They are all part of the same problem.

  • MrLogical


    • http://cia.americanspecialops.com/air-branch/ NASA

      Don't expect any of the republicans to step up to the plate and fix it.

      • carolchristine

        Exactly. Are they going to be under the Obama care law? I know a while back they were all trying to figure how to get out of it. Now the IRS and the Unions who helped pass this law want to be exempt from it also. If it is so great then why are they all trying to get out of it? The IRS handling our healthcare is disturbing because I am afraid they will abuse their power again and deny conservatives medical procedures according to your political or Christian leanings. No one knew the IRS was targeting Christians and conservatives for a few years, Well that would be disturbing if your healthcare was procedures were denied for those reasons. Don't anyone think it could not happen because it already has.

        • http://cia.americanspecialops.com/air-branch/ NASA

          Yes. Watch the news tonight. The IRS wants out as do most if not all of congress. The program is a scam and too complex for the government to manage. It is just another tax...period.

          Turning this program over to the IRS to manage is like turning NASA over to the Department of Fish and Wildlife, or a pharmacy over to a drug addict to run.

          Our government is out of control and being run by a teenage dope smoker. The only people more stupid then Obummer, are those that voted him and his thugs into office.

  • Marlin208

    Everyone knows that Obamacare stinks, Everyone, including the unions.
    I am sick and tired of hearing that the Congress will do something about it and it never gets done.
    Here we are at the last chance to do something and they are running like scared rabbits.
    If shutting down the government is what it takes then do it and get on the tv and tell the American people why it had to be.
    God Almight, we all hate it and want it gone, Do something and earn your keep.

  • Walter Luffman

    I thought we were "only" headed toward the economic status of the old USSR. Looks like I was wrong; now I think Obamao aspires to economic equality with North Korea, or worse. Orwell was an optimist.

  • jime1

    Is this not truly a form if discrimination? I thought that especially the progressives were AGAINST any and all forms of discrimination. I guess working hard to acquire much of anything, let alone the American dream is now deemed evil, selfish, Un-American and therefore unacceptable.

    • Marlin208

      It is making everyone equally poor and equally miserable, except their cronies. There won't be a middle class anymore.

    • Teresa Fertitta

      you said "I thought that especially the progressives were AGAINST any and all forms of discrimination".

      I say: Unless you are conservative, working (i.e. producing), white and Christian.

      • soldiermom11

        Actually they want black conservatives down on the government plantation too.

        How many black conservative men and women have been invited to the NAACP? Ask Daneen and Tom Borelli how they were black listed at the Convention because they were conservative blacks. So we have morphed from the plantations of the south to the government plantation that obama wants us all on and if you disagree with the progressives you are verbally assaulted and closed out of participation in something that may be very dear to your heart if you are black. So I gues we don't have to worry about advancement of colored people anymore... it sounds like we do have to worry about the advancement of conservative colored people. (Colored is the NAACP's word - not mine).

  • AlRetd

    Somebody has to pay for the WH vacations?

    • Marlin208

      Their goal is to make this nation poor and keep it down. After all even the pResident said in his books that he has a coil of hatred for whites and let's face it, they are the worker bees in this country.

      • msbets

        Yes, and that's what they have been doing to blacks for decades, keep'em on the government dole...............however this pos, is doing it to the entire Nation, and that was this freak of natures intent from day one, one payer healthcare and EVERYONE UNDER THAT RAT BASS TURDS THUMB, WHICH WILL BE PASSED TO HITLERY IF WE DON'T STOP THEM.

  • $2398599

    Which then , tells me that what I need to do, is go get paid under the table, discount my goods or services as long as there is no paper trail, or start bartering, Or, perhaps, just stop working, and claim all sorts of support from the other suckers called tax payers. What the heck, it's what politicians do.

    • Nathan51

      This is why I quit my 70k job in 2011 and took very very early retirement. I saw this coming and decided after working from the time I was 14 to 57 to spend down my savings, IRA and 401k and then riot in the streets with the rest of the freeloaders for my free stuff. To hell with it all! Let it all collapse and then maybe we can deliver some street justice to the lot of them. I refused to work one more day to support this corrupt Kenyan weasel and his gang of little Brown Shirts!

  • burself

    Are the income levels listed in this article determined by AGI?

  • Larry Eaton

    Are you kidding me?!!! This is outrageous! It is absurd! It is like having a 2nd incoime tax to pay! Who can afford to pay these kind of rates? Who are the rich? Well, it is the liberal democrats along with our corrupt president who pushed ACA onto us. These elected officials must be voted out of office along with rescinding Obamacare! Congress, defund Obamacare before it destroy the middle class taxpayer!

  • https://me.yahoo.com/a/CfsINEYDoex3fXYF.FLFCPOcXaFQros-#f30f8 jong

    Which of course is totally illegal. We are all equal before the law. Money can not by law make you pay for something that is demanded but, allows you to go the best place to buy it. And of course I will bring up once again that this was not either put through or passed as a tax.

    • princesssong

      UH Jong, have you not NOTICED that HE doesn't follow the laws? IF we DON't Do something quickly, we will be like all the other countries that get taxed for having a second bedroom!

    • MrLogical

      Get ready to pay for the healthcare benefits of someone else, in addition to your own.

      • https://me.yahoo.com/a/CfsINEYDoex3fXYF.FLFCPOcXaFQros-#f30f8 jong

        Of course that was part of the plan all along. That and bankrupting the insurance companies because they would try to keep up with all the taxes and would burn themselves out.

    • carolchristine

      I want to know why the Supreme Court did not see this as Unconstitutional.

      • https://me.yahoo.com/a/CfsINEYDoex3fXYF.FLFCPOcXaFQros-#f30f8 jong

        Because Roberts rightly saw problems down the road. Instead he called it a "tax". I did not start as a tax nor was it passed as a tax so he gave Congress a way out. Now if they would only open their eyes.

        • Teresa Fertitta

          Roberts passed it because he was blackmailed into it, after having adopted two Irish children, which is illegal according to Irish law. Now the Progressives have him in their back pocket.

        • https://me.yahoo.com/a/CfsINEYDoex3fXYF.FLFCPOcXaFQros-#f30f8 jong

          That I have not heard. However, he has made other rulings that are very conservative.

    • Remington 870

      At this moment, the IRS is still in a position to manipulate, manage and intimidate all those who are forced into Obamacare. So far, the cowardly GOP congress has yet to get the IRS our of the Healthcare business, and the GOP Congress has yet to find the truth about IRS targeting, Benghazi, or other scandals handed to them on a Silver Platter.

  • http://www.InformingChristians.com/ DebraJMSmith

    I want this to hit those liberals that voted AGAIN for Obama right in their wallets like a brick!

    • DWinch

      Sorry but most of those who voted for obama carry purses. Including the men!

      • http://www.InformingChristians.com/ DebraJMSmith

        lol... Point well made. :o)

      • Screeminmeeme

        LOL. True...including the Little Man himself.

        • Nathan51


    • mydogpopo
  • mudguy

    And Senator Lee and the others who want to defund Obummercare are just cry babies. When the one who helped write it says it is going to be train wreck. It's time to stop the train. Why would anybody want to get on a train that is going to run off the rails at a high speed. But then there is book out on how to survive the crash.

    • Indiana Conservative

      MIke Lee was not in the senate when this communism was passed.Idiot Liberal maxie baucus is running like this like a marxist rat

  • Centurian2010

    This is outrageous! Healthcare costs under obamacare will skyrcket!!

  • Lee Riffee

    If they think that about $45K is considered wealthy for a single person (OK, a single person living in an extremely poor area I suppose, but even then...) they are crazy! What I think will happen with the two hypothetical 50 year olds in the example is that they will just buy whatever insurance they can afford (regardless of whether it is "gov't approved" or not, and then simply pay the "fine" on top of that).
    Sorry, the gov't has no right to tell you what kind of insurance you have to buy (true, with car insurance states set minimums on certain coverages for car insurance, but then again, you can elect to not drive!) and what you must spend. That's 100% BS.

    Personally, I don't want their sh**y subsidy, and I will just continue on with the insurance that I now have and will refuse the subsidy. After all, it isn't worth them getting all my personal info and then trying to tell me what kind of policy I must buy. Also, it seems they want to get rid of age discrimination, but yet apparently you are only "allowed" certain kinds of policies based on your age. Sorry, that's discrimination.

  • http://www.confessionsoftheprofessions.com Matthew

    ObamaCare: Tax the people who can't afford insurance so that they can pay for the insurance of others. And forced to take it if you have no other alternatives. Welcome to the United States of America. Land of Opportunity. Free? Far from it.

    Just another way for the United States government to rob more people because it is so in debt .. and there is no way out. Delaying an inevitable bankruptcy and depression so that it can continue to fund its illegal activities and wars.

  • joyceoando

    I can't believe they set the cap for a single person at 45,960. That is a middle class salary not rich by any means.And the amount goes up a lot according to age!!!They should have it sliding scale with a cap of 9.5% no matter how much you make. How can they discriminate against healthy middle class older people and not discriminate against people with pre existing conditions?? A healthy person age 62 who makes 46,500 a year will have to pay 590 a month ! A person age 30 with a pre existing condition like a brain tumor who makes just 1000 (45,500) less a year will pay only 233 a month. HOW THE HECK IS THIS FAIR!!! I am so upset my hands are shaking. I lost my health insurance when my husband died a few months ago. I am 62 healthy ( at least today) and make just over the cap for a single person and I am SHOCKED at what my premium would be. I was so looking forward to getting health insurance after my husband died and left me without any.