What you see is not what you may get.
Posted: Fri Sep 19, 2008 2:16 pm
Read the following and then tell me what it says.
John McCain Will Reform The Tax Code To Offer More Choices Beyond Employer-Based Health Insurance Coverage. 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.
Time is up.
Here is a good example of politico speak. Take this literally and each American will receive a tax credit. That sounds good except they left one part of this plan off the McCain-Palin website. That little detail is that the tax code with regard to employer sponsored health benefits will be set on its ear and anyone who has employer based coverage will be hit by more taxes, in some cases a lot more and that affects over 100 million Americans. :-1
So what’s the rest of the story, well by eliminating the tax free status of employer contributions toward health care the average family will have additional taxable income of between $8,000 and $12,000 per year depending on your benefits plan and where you live. So here is the deal, say you have imputed income of $10,000 and you are in the 20% tax bracket. In year one you pay $2,000 in additional taxes on the $10,000, but you get a credit of $5,000 and in year two the $10,000 goes to $10,900 because of increasing health care costs and you pay $2,180 in taxes and get a $5,000 credit and in year three, you get the idea. :-5
But wait, won't the tax credit also increase, good luck with that. :rolleyes:
Whether you like the plan or not (and if you have no employer coverage it is better than nothing), is not the point. The point is here is another example of a politician trying to obfuscate the facts.
And what the heck is “innovative insurance?†:-3 I will tell you, it is high deductible, catastrophic type coverage which means you pay now or pay later. Again, something you may like, but gees, say the words will you guys.
Not to worry, like just about everything being promised by both campaigns, the chance of this actually going into effect is as good as Obama affecting "change."
John McCain Will Reform The Tax Code To Offer More Choices Beyond Employer-Based Health Insurance Coverage. 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.
Time is up.
Here is a good example of politico speak. Take this literally and each American will receive a tax credit. That sounds good except they left one part of this plan off the McCain-Palin website. That little detail is that the tax code with regard to employer sponsored health benefits will be set on its ear and anyone who has employer based coverage will be hit by more taxes, in some cases a lot more and that affects over 100 million Americans. :-1
So what’s the rest of the story, well by eliminating the tax free status of employer contributions toward health care the average family will have additional taxable income of between $8,000 and $12,000 per year depending on your benefits plan and where you live. So here is the deal, say you have imputed income of $10,000 and you are in the 20% tax bracket. In year one you pay $2,000 in additional taxes on the $10,000, but you get a credit of $5,000 and in year two the $10,000 goes to $10,900 because of increasing health care costs and you pay $2,180 in taxes and get a $5,000 credit and in year three, you get the idea. :-5
But wait, won't the tax credit also increase, good luck with that. :rolleyes:
Whether you like the plan or not (and if you have no employer coverage it is better than nothing), is not the point. The point is here is another example of a politician trying to obfuscate the facts.
And what the heck is “innovative insurance?†:-3 I will tell you, it is high deductible, catastrophic type coverage which means you pay now or pay later. Again, something you may like, but gees, say the words will you guys.
Not to worry, like just about everything being promised by both campaigns, the chance of this actually going into effect is as good as Obama affecting "change."