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Firefighters Whack McCain for Taxing Benefits

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October 21, 2008 12:50 PM

ABC News' Teddy Davis and Hope Ditto Report:

Picking up on an argument that the Obama campaign has hammered in its own ads, the International Association of Fire Fighters launched an ad in six states on Tuesday which criticizes John McCain for proposing to end an employee's ability to deduct the cost of health benefits from income taxes. 

Watch the firefighter ad HERE.

The ad will air in six battleground states: Florida, Missouri, New Hampshire, North Carolina, Ohio and Virginia. The versions of the ad that will appear in New Hampshire and North Carolina will link Republican Senators John Sununu and Elizabeth Dole, both of whom are in tough fights for re-election, to McCain.

The firefighters leave out that McCain would replace the current deductibility of employer provided health plans with an across-the-board refundable tax credit of $2,500 per individual or $5,000 per family.

At first, most Americans would be better off with the tax credit from a strictly tax standpoint, according to the non-partisan Tax Policy Center. McCain's plan would also provide subsidies to people who do not currently get subsidized because they do not have employer-provided health care but rather purchase it on their own. Lastly, the McCain tax credit - since it is flat - changes the current situation in which the largest tax subsidy flows to workers with the highest income and the most generous health plans.

While the firefighters skirt some details of the McCain plan, experts believe that McCain's plan could encourage a movement away from employer provided plans that have more risk sharing, putting more people in the individual market where there is no protection for people with pre-existing conditions. The McCain tax credit could also become a worse deal over time since it would grow with generalized inflation rather than with health-care costs which are rising faster.

McCain says he would work with the governors to create high-risk pools for people with pre-existing conditions. But he has not proposed specific funding commensurate with the anticipated need.

October 21, 2008 in McCain, John, Vote 2008: Democrats, Vote 2008: Republicans, Washington, White House | Permalink | User Comments (63)

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YOu all should maybe get a clue .. check out the facts. this is a blown out attempt to hinder McCain. It has been proved and shown on factfinder that is is all bougus.. come on.... NOW who is Running the negitive ads...THe same person who has all along and now one has the balls to say it..Don't be uninformed... check the facts...

Posted by: molson | Oct 21, 2008 1:44:05 PM

martythedesigner: "a financial burden of more than $3,000 per American family."

What is it with Republicans and math? The only way to get that to work out as $3k per "family" is to count single people as one-person families.

Have calculator, will check, lol

Posted by: Paul | Oct 21, 2008 1:45:58 PM

Posted by: edward special | Oct 21, 2008 1:47:32 PM

Nat - one correction - McCain doesn't need PA.

If he holds everywhere he is expected to and wins NC, VA, MO, FL, OH, CO and NV (I think I got 'em all), he wins.

Oh those, FL has begun trending back toward McCain, and OH has been too close for either side to feel comfortable with for weeks. I expect McCain to win both. I also expect him to win NC, though it will be pretty tight. And same for MO, though Obama has a lead there, won't be surprised to see it go for McCain.

Obama may well win the election in either VA, CO or NV. He looks poised to take all three and most likely will only need one (like McCain, Obama also has to hold everywhere he is expected to).

Posted by: Paul | Oct 21, 2008 1:51:14 PM

Well Obuma can send in his clown!!
I think the most ‘telling ‘ (foreshadowing ) statement Biden made was , “And he’s gonna need help. And the kind of help he’s gonna need is, he’s gonna need you - not financially to help him - we’re gonna need you to use your influence, your influence within the community, to stand with him. Because it’s not gonna be apparent initially, it’s not gonna be apparent that we’re right.”

This can be summed up to simply state “get ready , America ’cause you’re not going to like what we are getting ready to do to you !”

--------------------------
THIS REALLY SOUNDS LIKE A WARM UP FOR THE DRAFT!

Posted by: HP Boston | Oct 21, 2008 1:53:20 PM

National health insurance is going to cost taxpayers a whole lot more than Obama admits. Just ask Gov. Deval Patrick in Massachusetts, where just two years into operation, the state's mandatory health insurance plan is already costing $400 million more than budgeted.
It is also projected that Medicare will be bankrupt by 2011.

Posted by: marythedesigner | Oct 21, 2008 1:53:43 PM

HP: "THIS REALLY SOUNDS LIKE A WARM UP FOR THE DRAFT!"

Now there's some creative connecting of the dots.

I thought Biden was hinting at us scrapping our currency for Euros, lol.

Posted by: Paul | Oct 21, 2008 1:55:46 PM

Paul,

Great insight...

However, NC, VA, CO, FL, OH and NC are virtual locks for OBAMA.

In early polling in North Carolina, it's at 2-1 Obama. In early polling in NV, it's 3-1.

Electoral Numbers:
373 Obama
182 McCain

Popular Vote: Complete landslide for Obama. PERIOD

Posted by: Nat Turner | Oct 21, 2008 1:56:49 PM

Actually Biden is prepping us for the moment on Jan 21, when President Obama reveals to us all that he really is an alien ambassador from the planet Xununu.

Posted by: Paul | Oct 21, 2008 1:57:16 PM

Nat: "However, NC, VA, CO, FL, OH and NC are virtual locks for OBAMA."

McCain is leading in the Rasmussen poll in FL, and no one is calling an advantage for either in OH.

"In early polling in North Carolina, it's at 2-1 Obama. In early polling in NV, it's 3-1."

What that's saying is that early voting breaks down by party registration as Democrats to Republicans, 2:1, etc.

Nobody is counting votes yet nor revealing exit polling. It just means when given a chance more Democrats are coming out early rather than waiting for the 4th.

There's no doubt we have more pent up energy and anticipation on the Democratic side. I think that's all the early voting numbers are telling us. Democrats are more likely to really want to move on and can't wait to vote.

If Obama wins, Republicans will be anxious to beat him in four years, and my guess is we'll see the opposite numbers from early voting, though perhaps not as pronounced as now, and the general desire to get Bush out of the White House and into history books.

Posted by: Paul | Oct 21, 2008 2:03:01 PM

McCain won't win VA. Even in the parts of the state Palin claims 'real america' they don't like them two either.. I live in those parts of VA Lynchburg as a matter of fact Jerry Falwells town (thank God he's not here; he would have ran his mouth the whole election) and no one around here is talking good about McCain.. most people say he's a scam artist lol

Posted by: paint VA blue | Oct 21, 2008 2:03:29 PM

And because our voting system sucks so bad in VA, they are encouraging folks to vote early.. and I know I will be mailing in my early ballot

Posted by: paint VA blue | Oct 21, 2008 2:07:44 PM

Fact is everyone agrees the U.S. health care system is flat-out broken. But taxing health care benefits is stupid bureaucratic gobbledy gook, that would make things even worse. There is only one area in which it's even semi-functional and that is in regard to employees who have their health care provided at work. McCain's plan would not only do nothing to fix the health care crisis it would throw employer provided health care into total chaos with tax of benefits, subsidies and other such mumbo-jumbo. It's a confusing sham. Don't be fooled. McCain would wreck the only part of the present health care system that functions somewhat decently.

Posted by: hopesprings52 | Oct 21, 2008 2:08:28 PM

Nat - one correction - McCain doesn't need PA.

If he holds everywhere he is expected to and wins NC, VA, MO, FL, OH, CO and NV (I think I got 'em all), he wins.


** Say what you want but I know VA will be blue.. we have a democratic governor and people are tired of the lame republican party.. I know this and he won't win VA... the coast which is pretty populous as well will vote heavily for Obama

Posted by: paint VA blue | Oct 21, 2008 2:10:12 PM

In 1931, facing an economic crisis as our nation was entrenched in a 2 year recession, our government abandoned the traditions of our nation and in a bold populist move an unpopular president in Herbert Hoover called upon Congress to raise corporate income taxes and raise personal income tax rates. As a result, the corporate tax rate jumped nearly 15%, estate taxes were nearly doubled and individual income taxes were increased, with the top tax rate increasing from 25% to 63%. To this date, the 1932 Revenue Act is the largest peacetime tax increase in US history; that is until the proposal put forth by Senator Obama.

The Revenue Act of 1932 was first proposed in 1931 and would not be enacted until June 6th, 1932. At the beginning of 1932, Unemployement rested at an astonishing 15.9% and GNP in 1931 had fallen by 8.5%.

Senator Obama's tax plans are nearly identical to those of the 1932 Revenue Act, whereas Estate Taxes would jump exponentially, the second highest corporate tax rate in the world would become the highest and personal income taxes would jump substantially for millions of small business owners and workers across the nation. Obama's tax proposals would represent the largest revenue based tax increase in US history .

So how successful was President Hoover's tax increase?

In the second half of 1932 the economy completely collapsed in the United States. By the November elections, unemployment had jumped an astonishing to an astonishing 23.6% and the GNP fell a record 13.4%. In March of 1933 the nation would face a third banking crisis prompting Roosevelt to declare a National Bank Holiday to halt the run on financial institutions. By the end of 1933 GNP would continue to fall and unemployment would reach a record 24.9% as one out of every four Americans would be without a job. Roosevelt would rely upon heavy deficit spending in an attempt to keep the country afloat. Yet, at the end of 1938, our nation would still suffer under a 19.0% unemployment rate.

Posted by: marythedesigner | Oct 21, 2008 2:11:32 PM

Posted by: marythedesigner | Oct 21, 2008 2:11:32 PM

* Mary the designer I doubt Obama would use something from the 1930's.. at least he's trying to change something because if you think the current tax system is working.. then you are a big fool like the conservative party

Posted by: paint VA blue | Oct 21, 2008 2:12:55 PM

A message to the Kool-Aid drunk Obama Nation (hereafter KADON)

KADON, I think that you might be able to grasp the idea that few earn over $250,000 without a little help, a little help from, well, employees. Now, for simplicity, lets refer to those as employers, whether they be rich individuals or corporations. Enterprises run by wealthy individuals or corporations, KADON, may well, not be the only supplier of the products/services they offer. They may well compete against many suppliers, even some from abroad, even some from abroad having certain cost advantages. These cost advantages, KADON, could be wages, raw material prices or, they could be tax expenses. That is right taxes are expenses, to employers, wealthy or not. Now, lets think about those U.S. corporations that are fighting for their life (please read this also to be fighting for the existence of the jobs that they offer, to employees, in the U.S.). Many corporations maintain physical presence in both the U.S. and the abroad. Now, hypothetically, if, their operations in the U.S. face an 80% tax rate on profits, while their Malaysian operations face only a 15% tax rate, then do you see, how it makes economic sense, for the employer, to think it is likely a very good decision to move operations from Ohio to Malaysia? Now, it will be more subtle, the tax rates aren't nearly as different, but they are different. Then, they might just stop hiring in Ohio and hire only in Malaysia. In any case, there are some in Ohio who might either be laid off or not hired.

Regardless, even though your dear candidate will offer 95% of all Americans a lower tax rate, those laid off because their rich employer had to shift jobs overseas, still have no job. They'll be baffled 3 years from now. Maybe they'll say, I should have said thanks, but no thanks Senator on that tax plan to nowhere.

So KADON, understand this simple lesson. The wealthy employ. If changes occur to the cost structure in their operations, including tax expenses, they will be incented to react, if they don't they may find themselves at a cost advantage sufficient to erode their economic viability on a permanent basis, or at least until they cease to exist, in which case, nobody has a paycheck from them.

Ok, rich American corporations, lets assume that our above corporation is not struggling, lets say that it is called Exxon. Well, KADON, Exxon produces some energy in America, using American employees to do so. America is not a cheap place to produce energy. What, do you think Exxon will do, when President Obamba raises, as he likes to say so often, taxes on corporations that export jobs overseas? You got it! They'll divest (reads: send to the unemployment lines) their American energy production operations.

The final thing that I want you to grasp KADON, is that when President Obama puts millions of Americans, formerly employed by corporations, onto the unemployment line, they will not, unless Ms. Pelosi redistributes wealth and gives them a nice fat welfare check, have any money to buy the goods and services offered by all small businesses, including those that he claims he will not tax additionally. Small business owners will be baffled too. President Obama, thanks for not taxing my income additionally, but, it is nowhere near $232k, as it was before you took office, it is $104k, what happened? I drank the Kook-aid! I promise I did. I had to lay off 2 employees because demand is so weak for my products, because so many corporate types have been laid off.

Is it sinking in?

One final thing, I hate to burst the bubble of all of you out there that have drank Mr. Obama's kool-aid, but when he says "tax cuts for employers that export jobs overseas", he isn't really referring to Republican led legislation that actually instructed the IRS to give a tax credit to all corporations that actually did export jobs. What he is really referring to is Republican led legislation that incented corporations to not export jobs, by giving them a tax cut, but, even though the tax cuts were given, jobs were still exported, because the tax cuts weren't sufficient, for some, to allow them to maintain their U.S. employment. This is yet another aspect that Mr. Gibson, Ms. Couric, MSNBC, etc. have failed to present to the American public. Shame on them!

I hope that this helps you all with your future pOstings, here and elsewhere.

Posted by: Taxes 101 for Democrats | Oct 21, 2008 2:20:40 PM

Well its about time we talk about this, I have been trying to. Now most of us Get Healthcare through our Employers and we pay for it out of our Salary, Now Mccain wants to Tax the Insurance like Income, isnt that like being DOUBLE TAXED?

Posted by: Angie | Oct 21, 2008 2:31:40 PM

Ang,

Not really looking to debate a moron, wouldn't mind cleansing you all of your stupidity. I'm posting only to get the attention of those with common sense.

Here, put down the Kool-aid and read through this re; tax on healthcare benefits.

http://www.johnmccain.com/Informing/Issues/19ba2f1c-c03f-4ac2-8cd5-5cf2edb527cf.htm

I hope it helps you and your future postings.

ps, you appear real young, judging by your postings, shouldn't you get out of the dorm and go to class?

Posted by: Deer Angie | Oct 21, 2008 2:57:27 PM

this is ABCNews at it's callously worst in media bias. the headline says "Firefighters Whack McCain" when the story goes on to say it's actually the Association of Fire Fighters. Sen. McCain fights for the firefighters, his opponent fights for the firefighters' union.

Posted by: Obamacrat for McCain | Oct 21, 2008 3:04:16 PM

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