McCain’s Plan To Tax Health Insurance
McCain’s Plan To Tax Health Insurance
Our guest blogger is James Kvaal, a Senior Fellow at the Center for American Progress Action Fund.
Earlier today, McCain advisor Douglas Holtz-Eakin answered critics of McCain’s health care plan, who say it could raise taxes on millions of middle-class families. He said:
[The McCain plan] is a transformation of the tradition of a tax subsidy to private insurance to make sure that subsidy is fair, both in the sense that it is available to every American regardless of the source of their private insurance and that every person gets the same amount — $5,000 for a family, $2,500 for an individual. The Obama campaign has chosen to characterize only one piece of a comprehensive health care reform as a tax policy and thus try to hit John McCain with it. It is classic political rhetoric at odds with the reality of dealing with an important problem, like the underinsured in America.
Actually, considered as a whole, McCain’s plan will raise taxes on millions of workers for two reasons. First, his plan would tax workers’ health benefits, which are largely tax-free today. Although he also creates a new tax credit for insurance premiums, many workers will pay more in taxes on their insurance then they get from the new credit.
Second, the value of McCain’s credit will erode quickly. While health care premiums are expected to grow by 7 percent a year, McCain’s credit will increase by only about 2 percent a year. In contrast, current tax benefits keep up with rising premiums.
More details on the tax implications of McCain’s health care plan are available here.
6 Responses to “McCain’s Plan To Tax Health Insurance”
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Honestly I would rather have McCain’s corrupt policy advisers making policy over McCain himself. When he opens up his mouth off the cuff– and strays from these “talking points”– garbage just pours out.
Check out the new Iowa Democratic Party video about McCain’s “healthcare” plan
http://www.mccainvsiowa.com
Best quote from the video, “Shaq challenged ME!”
August 14th, 2008 at 9:00 pmGolly! This would mean McCain would equalize benefits for same-sex couples, treating those nasty gay people the same way god-fearing heterosexual married folk are treated!
Huh? Well, right now, if you’re lucky enough to work for a business that offers domestic partner benefits, you have to pay added income tax on the value of that coverage — what married folks now get as an untaxed fringe benefit. And McCain wants to take that away! Does James Dobson know?
August 15th, 2008 at 10:18 am“First, his plan would tax workers’ health benefits.”
Which means most employers will cease providing health insurance as a benefit to workers other than top executives. Employers provide 58% of health insurance in America today. The seismic shift will feel like a major earthquake to most Americans.
McCain wants to cut corporate taxes, yet he wants to tax health benefits? Confused where the pea is? Welcome to John’s shell game. Your best move is to clear the table, walk away, and vote for anyone but John McCain.
August 15th, 2008 at 10:23 amOnce again Mcwars shows how out of touch he is with America.I have to pay $250 a m on the for my health care and have a $2500 a year deductible.With the rising cost of health care his plan won`t cover me and my family after one year.I pay the difference of what my employer doesn`t cover and that amount is double what I pay so who is going to cover the huge difference? Mcwars is not what this country or the rest of the world wants or needs.His economics is for the wealthy while we on the bottom struggle.Tax cuts for the wealthy not onle help the wealthy they destroy the middle class and thsi country, can I say depression on 1929 from huge re-puke tax cuts for the wealthy in the Hoover administration, and look what we have currently it`s the same thing again.Vote Obama !
August 15th, 2008 at 10:30 amThomas Jefferson suggested the public hold a revolution once a generation. McCain could well usher in such an overthrow with his health care plan.
The hornets are angry after a decade of premium sharing and increased deductibles. A pox on the Houses of pandering politicians.
August 15th, 2008 at 11:00 amI just heard a woman talking about how Obama had a plan to tax health insurance. I had not heard anything about that so I googled it and found that it’s McCain who has a plan to tax the people who have health insurance through their jobs. Thanks for the clarification. I can’t wait until I see her again!
August 15th, 2008 at 10:02 pm