The Affordable Care Act added "about vi per centum points to the marginal taxation charge per unit of measurement faced, on average, yesteryear workers inward the economy." So estimates the University of Chicago economist Casey Mulligan.
Given that task income was already taxed yesteryear income in addition to payroll taxes, that figure indicates the render to working cruel yesteryear most 10 percent. If nosotros apply a plausible aggregate task render elasticity of 0.5, this inward plough suggests a decline inward task render of most v percent. In the long run, equally the uppercase stock adjusts, a autumn inward task render leads to a proportionate autumn inward output. So nosotros destination upward amongst a v percent autumn inward long-run potential output.
That calculation is very, real rough, but it does dot that the ACA could good live a significant reason why the economic scheme is non returning to its former increase path.
Update: Casey emails me that he believes the gross domestic product final result volition live smaller than this (about ii percent or a fleck more) because the demeanour upon on less skilled workers is greater than that on to a greater extent than skilled workers. As a result, the mix of skills volition change, in addition to gross domestic product volition autumn yesteryear less than full hours worked. Sumber https://gregmankiw.blogspot.com/
Given that task income was already taxed yesteryear income in addition to payroll taxes, that figure indicates the render to working cruel yesteryear most 10 percent. If nosotros apply a plausible aggregate task render elasticity of 0.5, this inward plough suggests a decline inward task render of most v percent. In the long run, equally the uppercase stock adjusts, a autumn inward task render leads to a proportionate autumn inward output. So nosotros destination upward amongst a v percent autumn inward long-run potential output.
That calculation is very, real rough, but it does dot that the ACA could good live a significant reason why the economic scheme is non returning to its former increase path.
Update: Casey emails me that he believes the gross domestic product final result volition live smaller than this (about ii percent or a fleck more) because the demeanour upon on less skilled workers is greater than that on to a greater extent than skilled workers. As a result, the mix of skills volition change, in addition to gross domestic product volition autumn yesteryear less than full hours worked. Sumber https://gregmankiw.blogspot.com/
