General Discussion
In reply to the discussion: How an additional $1,000 in income can cost you $6,420 more in premiums in CA [View all]Honeycombe8
(37,648 posts)That's the way everything is. In income taxes, if you earn $5 more, in some instances, that puts you in a higher bracket so that you'll end up with a lot less in income after taxes. There have been years where my Christmas bonus was wiped out by higher taxes, so it was as if I hadn't gotten a bonus at all.
It's always this way when you're close to a margin. The thing to do is to try to look ahead and not get that $1K in extra income, if you care that much. But then, you'd be giving up income, because even without the subsidy, you STILL come out about $500 ahead of if you'd bring home $62,000 in income.
And let's not forget: the subsidy is a welcome GIFT to the couple earning $62k or less (it's a sliding scale, I believe). So the ACE is a good thing for millions of people.