- Daily Photo: Obama Jokes Around at G-20
- Blackwater gets replaced in Iraq
- Daily Photo: U.S. Marines Look Out for Taliban in Afghanistan
- Hillary Clinton the Tomboy and Her "Ah-Ha" Moment
- Obama Administration Sudan Envoy Headed to Region
- Daily Photo: Potential Flashpoint in Iraq
- Clinton Says New Afghanistan-Pakistan Plan Depends on Diplomacy
- Exclusive: Three Israeli Airstrikes Against Sudan
- Additional 4,000 Troops to Be Ordered to Afghanistan
- Daily Photo: Navy Submarine Trains in the Arctic
- Alarm Over North Korea Missile Prep
- Anti-Terror Stimulus? US Offers Rewards for Top Terrorists
- Daily Photo: Pakistani Women in Refugee Camp
- Condoleezza Rice Appears on "The Tonight Show"
- Diplomat and Aid Group Sound the Alarm on Darfur Camp Situation
- auto industry rescue
- Ballotwatch
- Biden, Joe
- Bush, George W.
- Clinton, Bill
- Clinton, Hillary
- Dodd, Chris
- Edwards, John
- Giuliani, Rudy
- Gravel, Mike
- Huckabee, Mike
- Hunter, Duncan
- Inauguration
- Iraq
- Kucinich, Dennis
- McCain, John
- Obama, Barack
- Palin, Sarah
- Paul, Ron
- Romney, Mitt
- Tancredo, Tom
- Thompson, Fred
- Veepstakes
- Vote 2008: Democrats
- Vote 2008: Republicans
- Washington
- White House
« Previous | Main | Next »
McCain Health Credit Could Morph Into Tax Hike
Email
ShareJuly 02, 2008 7:20 PM
ABC News' Teddy Davis and James Gerber Report: Sen. John McCain's, R-Ariz., health-care plan would replace the existing tax exclusion for employer-sponsored coverage with a refundable tax credit for all Americans. The tax change is intended to create a more equitable system that provides everyone -- including those who do not receive their health coverage from their employer -- with the same tax advantage. And since it is refundable, it would provide a cash benefit to those who earn too little to pay federal income taxes.
But if the cost of health care continues to outpace inflation in the economy at large, McCain's health credit would morph into a tax hike for those who currently receive a tax exclusion for employer-sponsored coverage, according to a study released Wednesday by the liberal Center for American Progress.
"For millions of middle class families, the credit is smaller than the current tax subsidies, meaning that it is in fact a tax increase," said Elizabeth Edwards, the wife of former Sen. John Edwards, D-SC, and a senior fellow at CAP. "I know he's pledged not to have any tax increases, but this in fact will work as a tax increase."
McCain's tax credit could morph into a tax hike because the credit grows only at the rate of inflation (about 2 percent a year), while current tax subsidies keep up with health insurance premiums (which are growing at about 7 percent per year).
For a couple earning $40,000 per year and paying an average premium of $13,800, McCain's new tax credit would cut their taxes by $50 in 2009.
"[B]ecause the credit quickly falls behind rising premiums that are the basis for the current tax break, the family would pay $1,169 more in taxes in 2013. The family would pay $2,809 more in taxes by 2018," write James Kvaal, Peter Harbage, and Ben Furnas, the report's authors.
The McCain campaign does not dispute the study's assertion that the Arizona senator's proposed tax credit would offer a smaller subsidy over time than the current exclusion if health premiums continue to grow more quickly than inflation.
The McCain campaign is hoping, however, that its tax credit will exert downward pressure on prices.
It is also hoping that other reforms favored by the presumptive Republican nominee will lower costs, making his tax credit sufficient.
"John McCain believes that the fact that health care spending outpaces inflation by a factor of three is exactly the problem, and is exactly why health insurance is increasingly out of reach for Americans," said McCain spokesman Brian Rogers. "John McCain's plan includes prevention, affordable drugs, greater use of health information technology, coordinated care, and medical liability reform to address the rising cost of care to reverse this trend."
July 2, 2008 in Hunter, Duncan | Permalink | User Comments (46)
You can follow this conversation by subscribing to the comment feed for this post.
Hey libs, Check with the Amish re health care. Might expand your horizons. Nah.... no way!!
Posted by: Temagami | Jul 2, 2008 10:28:19 PM
444444444444444444444444
Are you suggesting the entire u.s population including you live like the amish? If not shut your sewer trap.
Posted by: Merri | Jul 2, 2008 10:41:35 PM
Typical McCain/Bush. Give to the rich and take from the poor and middle class.
After hearing Cindy McCain had a $750,000 monthly credit card bill, I realize why John McCain doesn't understand what we're going through.
McCain is your typical millionaire who's afraid to reveal his wife's full tax records. He knows they'll show wealth beyond most Americans dreams.
Posted by: Dan | Jul 2, 2008 10:42:38 PM
Hey Merri.
If you don't live live the Amish - YOU REALLY DON'T HAVE ANY CLUE WHAT YOU HAVE MISSED!! DUMMY!!
Posted by: Temagami | Jul 2, 2008 10:45:38 PM
Hey Dan.
Unfortunately, Neither you nor I are not the movers and shakers of our society. Money talks and you know what walks, makes them REVELANT. WAKE UP!! Money talks and you know what walks, but those people EMPLOY which makes them active players!! Big Gov DESTROYS!!!!
Posted by: Temagami | Jul 2, 2008 10:54:49 PM
Dan, the problem for YOU and ME is the fact that the so called Fat Cats employ the rest of us slaves, BUT we still have our fast foods, Internet, beer and lottery , etc. So we accept that!! Kill it off like Obama wants to do and we all turn into a nation of hunters, fishermen and trappers. THAT IS PRETTY BASIC STUFF - WHAT PART OF THAT DO YOU NOT UNDERSTAND!!
Posted by: Temagami | Jul 2, 2008 11:05:15 PM
Hey Dan.
Unfortunately, Neither you nor I are not the movers and shakers of our society. Money talks and you know what walks, makes them REVELANT. WAKE UP!! Money talks and you know what walks, but those people EMPLOY which makes them active players!! Big Gov DESTROYS!!!!
Posted by: Temagami | Jul 2, 2008 10:54:49 PM
44444444444444444444
If you are an average american as you suggest in your post. The saddest thing about your thought process is you are rabidly supporting the very party (republican)that makes it harder and harder for you as an average american to ever be a monied mover and shaker. I know of no republican policy that is skewed toward average americans. However, most republican policies are skewed toward the rich, wealthy and uber wealthy. So you are supporting the very party that continues to enact laws and policies that keep you in neutral or reverse.
Posted by: Merri | Jul 2, 2008 11:13:46 PM
once again the repugs want to make the rich richer off us middle class
Posted by: angie | Jul 2, 2008 11:14:28 PM
Merri.
You use the term "AVERAGE." There Isn't an AMERICAN living who with some effort, plus some education, can't earn 60K PLUS!! WHERE IN THE HECK ARE YOU COMING FROM?? THE HELP WANTED ADS ARE STILL CRYING FOR SKILLED PEOPLE!! GET AWAY FROM YOU MASTERS PROGRAM AND INTO THE REAL WORLD!!
Posted by: Temagami | Jul 2, 2008 11:29:05 PM
I cite the Amish in many of my blogs to show to others the value of self responsibility and determination as the Amish have so ably demonstrated, hoping that some may rub off. The Amish have lobbied congress(successfully) to be exempt from the Social Security program as part of their self determination, a value that I personally admire and hope that others can also!! What a difference in the value system of the liberals with their entitlement programs, and that of these wonderful Americans!!
Posted by: Temagami | Jul 2, 2008 11:48:51 PM
Merri.
You use the term "AVERAGE." There Isn't an AMERICAN living who with some effort, plus some education, can't earn 60K PLUS!! WHERE IN THE HECK ARE YOU COMING FROM?? THE HELP WANTED ADS ARE STILL CRYING FOR SKILLED PEOPLE!! GET AWAY FROM YOU MASTERS PROGRAM AND INTO THE REAL WORLD!!
Posted by: Temagami | Jul 2, 2008 11:29:05 PM
44444444444444444444444444
Why don't you try telling that to the people losing thier jobs at the 600 Starbucks stores being closed? Or the people in the automotive business from assembly line workers to car salesmen? I'm sure your words will be immediately taken to heart.
Posted by: Merri | Jul 2, 2008 11:51:18 PM
I cite the Amish in many of my blogs to show to others the value of self responsibility and determination as the Amish have so ably demonstrated, hoping that some may rub off. The Amish have lobbied congress(successfully) to be exempt from the Social Security program as part of their self determination, a value that I personally admire and hope that others can also!! What a difference in the value system of the liberals with their entitlement programs, and that of these wonderful Americans!!
Posted by: Temagami | Jul 2, 2008 11:48:51 PM
444444444444444444444444
So you're saying that americans are naturally lazy? Seems like a ignorant comment because their are many hard working americans that need food stamps and other forms of government assistance to get by. But of course you're call them lazy right? Btw Where is your outrage about all of our tax dollars going to companies that gambled screwed up but we the tax payers bail them out. The S&L and subprime scandals come to mind or better yet how about this?
http://www.msnbc.msn.com/id/25487136/
Your fearless leader Bush hard at work looking out for us hard working tax payers.
Posted by: Merri | Jul 2, 2008 11:59:35 PM
Merri. I would tell them to get with the program and train for those occupations which are KEEPERS!! HEALTH OCCUPATIONS FOR ONE. I DON'T KNOW WHERE YOU LIVE, BUT HERE IN CLEVELAND, HEALTH JOBS ARE FOR THE TAKING! GREAT MONEY!! I am almost 70 years, But I could go to Tampa, FL. on the next flight get a teaching job tomorrow!! BUT, YOU HAVE TO PAY YOUR DUES. YOU CAN'T THINK JOBS, YOU HAVE TO THINK CAREER!! MAJOR DIFFERENCE, OTHERWISE YOU WILL BE 70 AND STILL MAKING MIM WAGE!!
Posted by: Temagami | Jul 3, 2008 12:02:28 AM
Sounds like this assessment of the invasion of Iraq which McCain supports:
"The big story is Iraq, and the Americans unwittingly opened it up for the Iranians" by their invasion in 2003, analyst Farid al-Khazen, a Christian Lebanese lawmaker whose party is allied with Hezbollah said. "There is a Shiite majority, oil, the shrine cities and borders with Saudi Arabia."
Posted by: Last Call | Jul 3, 2008 12:06:53 AM
Merri. I would tell them to get with the program and train for those occupations which are KEEPERS!! HEALTH OCCUPATIONS FOR ONE. I DON'T KNOW WHERE YOU LIVE, BUT HERE IN CLEVELAND, HEALTH JOBS ARE FOR THE TAKING! GREAT MONEY!! I am almost 70 years, But I could go to Tampa, FL. on the next flight get a teaching job tomorrow!! BUT, YOU HAVE TO PAY YOUR DUES. YOU CAN'T THINK JOBS, YOU HAVE TO THINK CAREER!! MAJOR DIFFERENCE, OTHERWISE YOU WILL BE 70 AND STILL MAKING MIM WAGE!!
44444444444444444444444
Everybody is not cut out for the medical profession and it cannot support they if they were. Just like everybody cannot be a lawyer, or actor etc, etc. So what's your solution for that group of people?
Posted by: Merri | Jul 3, 2008 12:10:43 AM
Merri. The difference is that bail outs to business is of course a risk, but business DOES employ people and creates economic value - GOVERNMENT DOES NOT CREAT ECOMOMIC VALUE - MAJOR DIFFERENCE!!!
Posted by: Temagami | Jul 3, 2008 12:11:51 AM
Btw I'm sure they can use doctors and nurse here.
Posted by: Merri | Jul 3, 2008 12:12:40 AM
Here's the bottom line:
If you make less than $160,000 a year...you'll pay LESS taxes under Obama, and MORE taxes under McCain.
It's YOUR choice.
VOTE IN NOVEMBER.
Posted by: wilder5121 | Jul 3, 2008 12:15:23 AM
Merri. The difference is that bail outs to business is of course a risk, but business DOES employ people and creates economic value - GOVERNMENT DOES NOT CREAT ECOMOMIC VALUE - MAJOR DIFFERENCE!!!
Posted by: Temagami | Jul 3, 2008 12:11:51 AM
444444444444444444444444
Business can't employ or flourish if people don't buy. So why not give the money to people and let their spending decide which companies succeed or fail? But I guess that would be too dangerous in your way of thinking.
Posted by: Merri | Jul 3, 2008 12:15:51 AM
Merri. My solution would be for those people to discover what they could offer to society and then market themselves accordingly through education and training. IT IS NOT THE ROLE OF THE FEDDERAL GOVERNMENT TO BE THE PARENT OF EVERY INDIVIDUALL!!
Posted by: Temagami | Jul 3, 2008 12:17:38 AM
Merrri.
Whose money? You want taxpayers to belly up for those people who make poor decisions in life and who won't take advantage of the great opportunities to achieve the American dream?? Not me lady, if you want to, have at it. Nite - gotta get up at five to work. Have a good one, later!!
Posted by: Temagami | Jul 3, 2008 12:25:53 AM
Post a comment
