According to John McCain's health insurance plan the value of employer provided insurance will be taxable income reportable to the Internal Revenue Service -- assuming the employer can determine individuals' costs.

This would increase taxpayers' federal and state income liabilities and Social Security contribution. This would also boost employers' matching Social Security expense. Not to worry -- McCain will lower those employers' income tax rate. Of course, this would be a great way to force increased contributions to Social Security funds which are due to run out by mid-century.

Do you know that taxpayers now pay more than 72 percent of federal employees' health insurance costs which include congressional members, postal workers, and virtually everyone on the federal payroll. Legally, these people are employees of taxpayers. Is McCain also going to tax their health insurance costs, or just private sector employees?

How about other government employees working in states and municipalities? Are their taxpayer-provided health insurance costs going to be added to their taxable income? I think not, so private sector employees will be shafted again.

McCain claims that a federal tax credit of $2,500 for an individual and $5,000 for a family will more than offset the increase costs of state and federal taxes and insurance. Does anyone know where an individual can secure superior health insurance coverage for $208 a month, or a family for $416 a month?

Since health insurance premiums are tax deductible up to 7.5 percent of gross income, a taxpayer filing such a deduction will get a reduced tax liability, plus the appropriate tax credit, $2,500 or $5,000. Taxpayers who cannot itemize deductions would not reap this reward.

Whether he admits it or not, McCain wants to implement a plan that requires more state and federal bureaucracies to keep track of who paid what, when and how much to whom. Go figure your own tax liability and decide if you would be better or worse off under McCain's plan.

G.R. McCracken, Augusta