Obama: McCain Wants to Tax Your Health Insurance

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https://www.politicususa.com/en/Obama-healthcare-taxes-mccainImageDemocratic presidential candidate Barack Obama hammered John McCain on the issue of taxes today, while speaking in Dover, NH. Obama specifically pointed out that McCain’s healthcare plan would tax workers’ health insurance benefits.

“And I can make a firm pledge: under my plan, no family making less than $250,000 will see their taxes increase – not your income taxes, not your payroll taxes, not your capital gains taxes, not any of your taxes. My opponent can’t make that pledge, and here’s why: for the first time in American history, he wants to tax your health benefits Apparently, Senator McCain doesn’t think it’s enough that your health premiums have doubled, he thinks you should have to pay taxes on them too. That’s a $3.6 trillion tax increase on middle class families. That will eventually leave tens of millions of you paying higher taxes. That’s his idea of change,” Obama said.

Obama also pointed out that McCain would give tax cuts to people making over $2.8 million a year, “Now I do want to be fair. Senator McCain is offering some tax cuts. He’d spend nearly $2 trillion over a decade in tax breaks for corporations. He would continue the Bush tax cuts for the wealthiest Americans. His plan gives more than a half million dollars in tax cuts for households making over $2.8 million. That’s right – $2.8 million. Now I know that Senator McCain has said that only those making over $5 million a year are rich, so maybe he thinks that folks making $2.8 million are middle class.”

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The reality is that the McCain healthcare plan is a privatization plan. Currently, employers receive a tax credit for offering health insurance, but McCain wants to eliminate that credit, so that employers stop offering health insurance, and people have to buy their own. Not only would you have to purchase your own insurance, but you would have to pay taxes on the premiums. This is McCain’s idea of healthcare reform.

McCain’s plan would actually lead to more people losing their health insurance. His plan does offer a tax credit, which people qualify for after they buy the policy. If you can’t afford the policy, you don’t get the tax credit, which means that millions more Americans would have no health insurance. These are the types of issues that Obama needs to hit home everyday to expose the real John McCain, not the guy who is hiding behind Sarah Palin.

11 Replies to “Obama: McCain Wants to Tax Your Health Insurance”

  1. He needs to hammer this point home about taxing health insurance. I want to see commercials pointing this one out. People just don’t realize this and this is HUGE!

  2. I find it interesting that McCain wants to tax your insurance, while Obama wants to provide a tax credit for employers who offer health insurance. I think Obama is better in this area.

  3. As a small business owner with 9 employees including myself McCain’s plan is a total outrage. I work very hard to provide everyone one of my employees health and dental insurance and have the same plan that the receptionist has. I don’t make them pay any part of the monthly contribution. I have constantly worked to keep my premiums low and had to finally take a plan with a 1k deductable but help them if they need it. Even still with an average age of 30, only 1 smoker, and no dependants it costs almost 5k a year per person double the tax break he is proposing.

    Why is he punishing me for doing the right thing and taking care of the folks who work for me? If he thinks I am not competitive in purchasing he’s got another thing coming. I am smart enough and have the time(because buying health insurance for my people is part of MY JOB) to get all the available plans and compare the pros and cons. My employees who put in an 8 hour workday and then go home to take care of their kids or go to night school(which I also pay for if they are in a degree program or taking professional classes) do not.

    Yet another way he and his Insurance lobbyist cronies are trying to skin us who actually work for a living.

  4. I like Obama’s plan for health insurance. I was going to vote for McCain, but now after the debate I totally changed my mind because I need my heath insurance. I work two days a week and I’m going to College full time. I already have off the hook bills, let alone have to pay higher insurance when McCain in office. I dont make close to nothing. I’m only 18 and already had a retina tear. I have to have my eyes checked every 3 months and without this check up my retina in other spots could tear off as well because I have holes all in my eye. SO you can see why I can’t afford to lose my insurance. I dont agree with everything Obama might have to say but thats one thing I need. My vote goes to you Obama.

  5. Please read the following information, which makes clear that the McCain tax credit for health insurance (1) provides low- and middle-income workers with a tax cut, meaning people are better off than they would be under the current system and (2) does not affect employers in any way, shape, or form:

    Will Senator McCain’s tax credit for health insurance raise taxes on workers?

    No. To the contrary, the McCain tax credit for health insurance would provide low- and middle-income workers with a tax cut. This is because these workers would receive a bigger tax benefit than what they currently get. Moreover, any new income tax liability would be less than the new tax benefit. This produces a tax cut.

    For example, a family of four making $80,000 and getting a $12,000 insurance policy through their employer will keep $2,000 in their own pocket. Here, the family would pay $3,000 in additional income tax ($12,000 x 25%). After reducing the new tax liability by the $5,000 tax credit ($5,000 – $3,000), this middle-class family would see a $2,000 tax cut.

    Will Senator McCain tax health insurance for the first time?

    No. Currently, people who purchase health insurance on their own already pay taxes on the amount of money they use to pay for their health insurance. Similarly, if you are a worker receiving health insurance through your employer, you will pay taxes on the amount of money that is used to pay for your health insurance under Senator McCain’s plan. Under the plan, you will receive a tax credit equal to $2,500 for single coverage and $5,000 for family coverage. This same tax credit would also be available to a person purchasing his or her own insurance. In the case where you purchase your own insurance, you would receive a tax benefit for health insurance for the first time. If you are a worker getting health insurance through your employer, you will generally receive a bigger tax benefit for health insurance than you currently receive.

    Will Senator McCain require employers to pay taxes on health insurance they provide to their employees?

    No. Employers are not affected under Senator McCain’s plan. Businesses will continue to be able to deduct health care expenses as they do now. And they will continue to be able to provide health benefits as they do now.

    But unlike the McCain plan, Senator Obama’s plan will actually tax employers. For example, under Senator Obama’s plan, if you are a small business with say – 30 employees – you’re going to pay a tax if you don’t offer health insurance.

    Will the tax credit for health insurance go to the insurance companies?

    Under Senator McCain’s plan, the tax credit is your tax benefit. You decide what type of coverage you want, and you assign your tax credit to the plan you choose to provide your health coverage. The tax credit is advanced for you each month, and for ease of administration, is delivered directly to your plan to pay your monthly premiums. Bottom-line, it is your tax credit to pay your premiums for your plan.

    Will employers drop the coverage they provide their employees?

    Critics of the McCain plan argue that young and healthy workers will opt out of the employer-based insurance market because they can find a better deal in the individual market. These critics over look that, often times, young workers will be better off under the McCain plan if they continue to get health insurance through their employer.

    For example, a young single worker making $50,000 who is getting a $2,500 self-only health insurance policy through his employer would pay $625 in income taxes ($2,500 x 25% tax bracket). But this worker would get a $2,500 tax credit to offset the new tax liability. This leaves a $1,875 tax cut ($2,500 – $625). In order for this same worker to receive a $1,875 tax cut if he purchases health insurance in the individual market, the worker would have to purchase a $625 health insurance policy. The choice here would be a $2,500 health insurance policy and a $1,875 tax cut or a $625 health insurance policy and a $1,875 tax cut.

  6. Hopefully now that Obama is president we will start seeing some of his change vows put to action. His tax benefit for employers I feel is a better answer than McCain’s proposal.

  7. How about they run this under a campaign against the new Health Plan that Obama is putting in place? Just replace McCains name with Obama and Obama can argue against his very own plan…

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