Over at TIME Magazine’s political blog, “Swampland”, columnist Joe Klein notes yet another (under-reported) reason why working people shouldn’t vote for John McCain — he wants to tax your health care benefits:
Today’s issue: health insurance. John McCain wants to tax your employer-provided health care benefits. He wants to replace those benefits with an insufficient tax credit—$2500 for individuals and $5000 for families (the average cost per family for health insurance is $12000).
There is a positive, progressive tax aspect to this: wealthier people should have to pay for health insurance themselves, without tax breaks from the federal government.
But make no mistake: this plan will do little or nothing for those who do not have insurance now—unless they are young and healthy—and it may well hurt a fair number of workers, especially unionized workers, who get gold-plated benefits from their employers.
It will certainly do nothing for families with members who have pre-existing conditions or children with special needs—because it makes no provision to regulate the insurers, forcing them to cover all comers at “community” rates that don’t discriminate against the people who need health insurance most.
Raising taxes on any worker fortunate enough to have good health coverage? That’s not the kind of change working people need!
But it’s the kind of change John McCain promises to bring you as President.
Vote accordingly.
UPDATE (Sep. 12): Great write-up at cybersteward.net on this very issue.
If you think John McCain is the guy who will cut your taxes, you need to pay more attention to what’s really happening.
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Comments (5)
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I'm glad folks are starting to pick up on this. (I finally just wrote something about it yesterday.) John McCain (and his hero, George W. Bush) have been endorsing this type of tax structure for a while now.
It's kind of scary when I talk to my co-workers who say, "I would vote for Barack Obama, but I hear he's going to raise my taxes."
Posted by Howard on September 11, 2008 at 5:37 PM
Posted on September 11, 2008 at 5:37 PM
I am one of those lucky (and very hard working)individuals who have a gold plated health care plan from my employer. My salary is just okay, so benfits mean alot. If the taxation of health care benefits works the same way as graduate tuition benefits for employees going to graduate school at the college where they work, it greatly reduces the benefit.
My benefits package is worth about $9000 a year for my husband and I. If that were added to our salary as part of our taxable income, it would cost me several thousand $ a year.
McCain-Palin is a total no go...middle class people need to wake up. Security and terrorism is just a red herring with McCain; he really want to steal from the middle class.
Posted by margaret on October 6, 2008 at 12:31 PM
Posted on October 6, 2008 at 12:31 PM
Ok, I have an employer paid health care. I pay zero dollars for a montly premium. I have long stated that it is income that I dont see. Why would I not be taxed on it. Lets see I go from 75K a yr to about 85k yr. My AGI goes up slighlty, I keep my employer paid health care and get $5,000 dollars in my pocket to spend as I want. Lets see payin about 1,000 more in income tax I net $4,000 dollars I have to spend how I want. I inturn invest or spend that money. Boost to economy either way I spend it. How is this bad for the "middle class", BTW I am a union member. McCain's plan is better than the alternative, socialzied medicine and forced employer paid health care.
Posted by southtx30 on October 14, 2008 at 3:01 PM
Posted on October 14, 2008 at 3:01 PM
Just do what we have done in the UK and many other European countries. Universal health care here its called the NHS (National Health Service) it’s free at the point of delivery regardless of health condition and salary. It’s a cheaper fairer system. The American health care system is crazy it works out more expensive and leaves millions of people uninsured. Oh and if you want private health care it is available here in the UK, it is faster sometimes but expensive and they cut corners so the service is not always as good. Unfortunately our government did privatise the dental industry by the back door guess what happened companies got greedy charged more and cut costs. Come on America its about time you got a better health care system and better welfare support for the poor people.
Posted by Chris nash on October 19, 2008 at 12:56 PM
Posted on October 19, 2008 at 12:56 PM
Yet another example of how the media has twisted this issue and allowed so many people, including Obama, to get away with a flat out lie. Does no one really research things? Are you all lemmings with whatever the media says?
Before you break out the needles, read this and read it carefully several times to digest it. Seriously. This is a non-partisan examination of the actual issues involved with the health care issues and why McCain's plan WILL benefit those average blue collar workers AND the growing ranks of us who work for ourselves.
http://www.cfif.org/htdocs/freedomline/current/in_our_opinion/Will-John-McCain-Really-Tax-Your-Health-Care-For-the-First-Time.htm
The liberal way is to have Government care for everyone at all times. This is called Socialism. The health care system DOES need to be revamped and improved, on that there is no doubt. But nationalized health care as in Canada and the UK is not the answer. Again, do the research and learn for yourself, don't take my word for it.
Go the site for the PBS program "Frontline" and watch their completely bi-partisan report on the various world health care systems and THEN comment.
Everyone lies. Obama is just doing it with the media behind him.
Posted by watchmen301 on October 27, 2008 at 4:42 PM
Posted on October 27, 2008 at 4:42 PM