Suspicious Discontinuities
The article discusses how U.S. tax and subsidy policies create 'discontinuities' where individuals are financially incentivized to earn less money to qualify for benefits. It highlights specific examples like ACA health insurance subsidies and various welfare programs.
Why it matters
It illustrates how complex government policy can inadvertently create economic disincentives for low-to-middle-income earners.
If you read any personal finance forums late last year, there's a decent chance you ran across a question from someone who was desperately trying to lose money before the end of the year. There are a number of ways someone could do this; one commonly suggested scheme was to buy put options that were expected to expire worthless , allowing the buyer to (probably) take a loss.
The piece provides an analytical look at economic policy mechanics without taking a partisan stance.
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