McCain proposal at a glance...

[vc1111]

I agree with McCain's proposal to remove the exclusion of health care benefits from taxation. It will create a balance against the 18 million self-employed who have never received such a benefit.

[Arthur P]

I couldn't disagree more. The paltry working class tax cuts he's proposed will be eaten alive by that exclusion, and every single blue collar worker will be paying MORE taxes than he is now. The $5000 per family health insurance thing he's proposed? That's barely half of what an individual has to pay for a year of individual coverage. My wife pays $750+ per month for her health insurance.

McCain's health insurance stuff would be a major screwing for blue collar people.

[vc1111]

Then you'd certainly agree that those 18 million should be immediately granted 100% tax write-offs for all premiums and out-of-pocket costs, right?

Barring that, taxation as planned is completely in order. Currently that benefit is a tax deduction to the employer AND tax free to the employee.

[Arthur P]

I'd go for 100% write-off on premiums, but not out of pocket costs. That's a little too wide open. Write-offs on premiums is reasonable, equitable and certainly not a screwing in disguise like McCain's plan is.

[vc1111]

You do realize that a 100% tax credit is the only way to achieve parity in comparison.

A write-off only reimburses the taxpayer to the extent of the marginal tax bracket. In other words, if you're in a 25% tax bracket, you get 1/4 of your premium dollars back in the form of a refund...whereas, the employee is receiving 100% of the value of the premium dollars paid on his behalf by the employer. He pays NOTHING out of pocket in most instances. The self-employed pays 100% of the cost out-of-pocket and then gets a paltry write-off. And you take exception to them having their additional deductibles and copays as a write-off?

[stealthycat II]

Arthur P so screw those who've done well for themselves and tax them hard huh ?