Senator McCain has proposed a little understood health care package which brings together the power of private enterprise with the assistance of the federal government.
Unfortunately, to date, there has been little real discussion regarding how good the McCain proposal is.
The Obama Campaign is running ads telling people that McCain’s proposal is “radical”, and that it will tax people’s health care benefits.
What they are ignoring is that McCain is offering a family a $5000 TAX Credit to offset the health care costs.
For an example, let’s take a family of four, making $60,000 AGI per year. This family is in the 15% tax bracket.
On a $12,000 health care premium which is employer-paid, this family would see an increase of $1800 in taxes owed.
This family would also get a $5000 TAX CREDIT
On a net basis, this family now has $3200 in additional household money.
Obama wants to send this family $1000 while raising taxes on the family’s employers.
In real dollar terms, McCain’s proposals are substantially more middle class friendly than are Obama’s.
McCain’s proposal will also be a huge benefit to the millions of self employed workers of America, allowing them to shop for health insurance while getting $5000 in assistance to pay for it. Obama offers these very small companies nothing.
This is my first post at Red State, I hope it is useful.