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But they get affected by the taxes? So they'd be worse off than they are now?

• rahimnathwani 7y ago
  The Medicaid income threshold is something like $1300/month. If you're earning that much, then the amount going on non-medical, non-food, non-rent stuff is probably under $500/month. Assuming you're currently paying sales tax on those purchases at ~7%, and this proposal increases that to 10%, you're paying an extra $15/month in tax. (This was a quick calculation based on info from the internet, so I could be mistaken.) BUT if you can buy medical insurance for less than $1000/month, then can you give up the Medicaid benefit and have the $1000 instead? If so, as long as medical insurance doesn't cost more than $985/month, you're better off with the higher tax and the $1000, than with the Medicaid benefit.