>> It was actually a good idea. Each person would get a $5,000 tax credit which would more than pay for healthcare if that person stayed with his/her employer plan or opted out.
At my old job, health insurance was $800 per month. My employer paid the whole tab. 12 x $800 = $9600 per year.
You’re saying that McCain would TAX that $9600 benefit but give me back a $5000 tax credit. That would be better for me just how?
Furthermore, I am self employed now; I have a high deductible health care policy and can contribute the full amount of the the deductible ($5000) tax free. The balance can grow tax free. McCain would TAX that amount but then give it back to me at is face value; however the growth on the balance would be taxible, and there would be no greater deduction on the premiums than I have now. Please clarify for me how that’s a better deal.
This is why McCain lost, because the plan wasn’t properly explained. The $9600 would have counted as income and added to your net income, you would get all of your legal deductions. Not all of the $9600 would have been taxed, let’s say about 28-40% max. Let’s say you figured you owed the Govt $1200. You then would have gotten a tax credit of $5000 meaning you would have gotten a check from the IRS of $3800.
The CATO institute said this plan would work for %95 of the people who paid for healthcare.