Here is something to point out to every friend you have with an employer based health care plan who thinks "McCain will cut their taxes".
You've probably heard the highlights of McCain's plan, where he'll credit everyone who buys a plan to help defray the cost of private insurance, but read down a ways to see the lowlights (paying for it):
While still having the option of employer-based coverage, every family will receive a direct refundable tax credit - effectively cash - of $2,500 for individuals and $5,000 for families to offset the cost of insurance. Families will be able to choose the insurance provider that suits them best and the money would be sent directly to the insurance provider. Those obtaining innovative insurance that costs less than the credit can deposit the remainder in expanded Health Savings Accounts. It's like real money, except the HMO gets the check sent directly to them!
Under McCain's plan, anyone could get the credit, and those who like their company health care plan could choose to stay in it. The credit would be available as a rebate to people at lower income levels who have no tax liability, Holtz-Eakin said. So people who earn minimum wage will be able to save the rest of the $2500 they receive after they're done paying premiums all year.
Such write-offs have limited value because average family health care plans cost about $12,000 a year, says Ken Thorpe, a health policy professor at Emory University in Atlanta. Also, many insurers won't accept individuals with pre-existing medical problems, he says. After the self insurers pay $1000 per month all year, they get a rebate for $5000 that's paid directly to the insurer.
The Bush administration has proposed health care tax deductions of $7,500 for individuals and $15,000 for families. He always was a compassionate conservative.
"No one should believe that John McCain is of the opinion that the current individual market is a great place to go shopping for insurance; it's not," Holtz-Eakin said. He's not stupid, he knows it's much better to be on a plan that's provided by the taxpayers... like John McCain.
Here's the part he doesn't talk about much on the road. The part that affects those with employer sponsored health care:
To pay for the tax credit, McCain would eliminate the tax exemption for people whose employers pay a portion of their coverage, raising an estimated $3.6 trillion in revenues, Holtz-Eakin said. Companies that provide coverage to workers still would get tax breaks. McCain would also cut costs by limiting health care lawsuits. Tax exemption?
My employer's health care plan is now an "exemption" that will qualify as taxable income if McCain becomes president. As a bonus, we wont waste any time in court if they operate on the wrong leg. That'll help drive cost
and quality down for everyone.
When Obama or Hillary speak of letting the Bush tax cuts for the wealthy expire, McCain calls it a "tax increase on the people who need the money most". But McCain will institute a
new tax on our health care, and he calls it "eliminating an exemption".
http://www.johnmccain.com/Informing/News/NewsReleases/Read.aspx?guid=f8319887-1528-40aa-971a-402f7d1adb9e http://www.usatoday.com/news/politics/election2008/2008-04-28-McCain_N.htm http://www.johnmccain.com/Informing/Issues/19ba2f1c-c03f-4ac2-8cd5-5cf2edb527cf.htm
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