McCain: I'm Not Raising Taxes. I'm Cutting Medicare!

[maddezmom]

McCain: I'm Not Raising Taxes. I'm Cutting Medicare!

Barack Obama says John McCain would raise people's taxes by changing the way the IRS looks at health insurance. McCain says he wouldn't.

Who's right?

Quite possibly McCain. But only because he's decided to slash Medicare and Medicaid instead.

Laura Meckler, who is one of the sharpest and most reliable policy reporters around, has the full story in today's Wall Street Journal.

To review: The essence of McCain's health care plan is to change the tax treatment of health benefits they get from employers. Instead of having people deduct the cost of group insurance premiums from their taxes, as they do now, McCain would offer everybody a tax credit--worth $2,500 to indivdiuals and $5,000 to families--that they could apply towards the purchase of health insurance. The credit would be valid whether people buy insurance through their employers or on their own.

It sounds simple enough. But you have to pay attention to the math.

more:http://blogs.tnr.com/tnr/blogs/the_plank/archive/2008/10/06/mccain-i-m-not-raising-taxes-i-m-cutting-medicare.aspx

[uppityperson]

1. k&r

[azurnoir]

2. I think my "favorite" line in a

McCain ad is "John McCain PROMISES to keep government out of your healthcare" translation "live or die your on your own".

[napi21]

3. How would he treat the employer paid portion of that group policy?

Right now, employers are allowed to claim the amount they pay for each employees health care as a business expense. If that doesn't continue, you will see a lot of employers drop that benefit cpmpletely.

[SharonAnn]

5. I believe he planned to remove the tax deduction from businesses.

[hay rick]

6. Double taxation.

If the employee is taxed on the employer contribution- viewing that contribution as having a cash value and therefore being equivalent to wages- I doubt that the employer would also be taxed. The income tax yes, FICA no plan is a compromise proposal and makes the employer tax liability situation murkier.

[barbtries]

9. from what i understand

the amount your employer pays will now be subject to income taxes.

[gordianot]

4. The only age group he was doing well with were seniors.

He just stepped on the third rail and will get fried.

[Tutonic]

7. Obama is correct--the liar would tax you on the insurance. Oh and

$5,000 won't buy you a bag of magic beans--exactly what you'll need under a McCain administration to get help. Obama had better be practicing his response on this issue because that pawn Brokaw is going to softball McCain on this. Don't fall for the corporate crap Obama--they're with the liar right up until the bus plunges into the sea--then they roll out of the bus and land safely beside the road waiting for your vehicle to drive by. Suggestion--gun the engine and run over them.

[Recursion]

8. McCain touched the 3rd rail?

Huh?