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
Comments
G.R., the $2,500 is to offset the difference, not pick up the entire load. You're trying to combine McCain's socialist health care with Obama's socialist health care. Universal health care, regardless of which method used, has proven to be a nuisance, at best, whenever tried.
Ignored is the fact that McCain's policy will remove the tax credit for the employer, removing the incentive to even provide insurance for employees. This would mark the end of employer provided health care for millions. Smooth move Repubs.
ranger, pt has no grip on reality, she's either a kept woman, or has millions that she inherited. People who actually WORK for a living understand the trials of living in the Reagan trickle down-pour up economic theory.
Wow!!!!! Ain't math fun...........Here's a couple of true lefties. Seems neither think they should be responsible for any part of their health care costs. Wonder if they smoke while sitting on that couch all day????
TruckinRanger, GaC, neither of you saw the huge contradiction in G.R.s letter? Read the 5th paragraph again. I'm aware of your complaints that the government doesn't pay enough of your bills, I was just referring to the subject matter of the LTE.
GaC is one of those waiting ... and hoping ... pt has a lot of money so her wealth will be spread to a poor, unmotived beggar like him and many other Democraps.
Copper, Truckin, shiv and sj and all the other libs will all be happy in the Obama cult until they taste the koolaid.
Gee, G.R., I guess you think putting a government that is trillions of dollars in debt and can't even protect it's own borders in charge of healthcare is the thing to do? Self responsibility seems to be an outdated concept in our country. Now, too many want government to take care of them from the womb to the tomb. If more people don't get out of the wagon, and help push the wagon, the wagon will break down. You think it's bad now, elect Obama. You ain't seen nothing yet. "A government big enough to give you everything you want, is also big enough to take everything you have!" Thomas Jefferson
No, mccracken, the govt will not be taxing the govt on the money that the govt pays in health insurance premiums for the govt's employees...what a stupid question... I can never tell if people who oppose McCain's plan are truly stupid, or just act that way when in public. If you get a $5,000 tax CREDIT (not a deduction), that is money that is paid directly to you. If you currently make in the bottom 49% of earners and pay zero fed income tax and do not have health benefits at work, you will receive $5k per year. That would help you buy insurance, would it not? If you are in that situation and you DO get health benefits from your employer, those bennies would be taxed, yep. So, if your employer spends $15k per year for your insurance, and you are at the 15% rate (remember, lowest wage earners!) you will be taxed $2250 on your benefit, but receive $5,000 to cover it. Hm! You will get a free gift of $2750 per year. In other words, only the evil, stinking, filthy rich could POSSIBLY pay more under the McCain plan. MY opposition to McCain's plan is based on the same reality as my opposition to Obama's: the govt has no right to tell me what I can do to provide my own health insurance.
shamrock, you can KISS IT! I probably work harder than you. I'm tired of MY taxes going to support the LAZY RICH, probably lie you!
You've had it too easy for the last 8 years, getting yours off the backs of those, like me, who work and PAY our taxes. Paws, you think you'd be better under McCain? Under him you'll LOSE your employer supported health insurance. The problem with you Repubs is that you aren't even informed on the consequences of your own candidates' plans!
Actually G.R. only that p[ortion of premiums ABOVE 7.5 percent are deductible and not at all for people filling a short form! In reality why didn't Johnny Mac say he woule send each individual 1500 dollars a year and that way we wouldn't need a deduction at all. Its because if he does away with the deduction, his wifes face jobs wouldn't be deductable! So just ask yourself if his credit helps all americans then why not a check every year to each individual and stop the deductions? Saves preparation time, saves accountability and dosen't cost a penny to the government, after all he is giving it as a tax credit. Lastly, G.R.s letter is right on the button, unfortunately the people reading it, were educated here, and score nearly last in education across america and probably don't understand it!
I admit that I have not bothered to read the letter or the comments. I just want to remind people that there was a time when companies provided health insurance free of charge to the employee, and often the entire family of the employee. That benefit was not taxed. However, people who did not have an employee paid plan or were self-employed had to find a health insurance plan and make their own premium payments. Those payments were not automatically deductible. If you itemized, you had to get over a certain threshold before before even part of the amount was deductible.
Now think about what I'm saying. On the one hand, someone was getting a benefit totally tax free. Another was not getting the benefit and not able to at least offset part of his expense of providing it for himself against his taxable income. Guess which party found the total inequity in that? Even so, the change was phased in over a period of years.
My bet Obama will provide a National Health Insurance plan for the 95% and then exclude the 5% who are actually footing the bill. He will expect the 5% not only to provide for govt., provide income for the masses, but also provide their own health care. That would truly be an affront and just sick! Of course many of you will think this is just.
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