T Nation

Taxing Health Benefits?


#1

http://www.usnews.com/usnews/politics/bulletin/bulletin_090603.htm

Is this the change everyone was talking about?


#2

Anyone who believed that Obama was going to cut taxes for 95% of Americans while increasing spending by the trillion dollars expected during his campaign (let alone the multi-trillion dollar actual result in just a few months) really could not have had too good a grasp on matters.


#3

I'm actually enjoying listening to all of the disgruntled gung-ho Obama supporters at work everyday. I know I'm not the most politically saavy person on this earth, but I did see this coming enough to say I told you so to most of them.


#4

You imply there was a better choice to be made.


#5

So, he's basically going to piss off a bunch of union people by taxing their sweet benefits packages. Am I understanding this correctly? He's really going to dig himself a hole from both sides on this one.


#6

Ahhh, remember the good ol' days, when BHO and the MSM were blasting McCain for wanting to tax health care benefits?

The machinations of left are truly sinister.

October 4, 2008 10:19 AM
Obama Calls McCain's Health Care Plan "Radical"
Posted by Maria Gavrilovic | 10

(CBS)From CBS News' Maria Gavrilovic:

(CHICAGO) Barack Obama will bring health care back into the spotlight today, after weeks of heavy emphasis on the economy.

At a rally in Newport News, Virginia, Obama will blast John McCain's health care plan, which he describes as being "radical."

McCain is offering up a proposal to tax health care benefits received through the workplace, but in return, he would give a $2,500 tax credit for individuals and $5,000 for families. The tax credits would be paid directly to the insurance companies.

According to excerpts from Obama's speech today, he will argue that McCain essentially will be raising taxes because the tax credit will not directly go back to individuals.

"You read the fine print, it's clear that John McCain is pulling an old Washington bait and switch. Itâ??s a shell game," Obama will say. "He gives you a tax credit with one hand, but raises your taxes with the other."

Obama is advocating for a universal health care plan, which would be largely financed by eliminating the Bush tax cuts. While Obama's program would be cost between $50 - $65 billion per year, he says the average consumer would save $2,500.

The campaign will also unveil four new TV ads, radio ads, and mailers which will criticize McCain's health care proposals.

EDIT: Cleaned up font issues.


#7

I can't believe I forgot about that.

I actually agree with taxing health care benefits, and thought McCain had a decent plan. I would have rather it been a deduction than a credit, and would have preferred there be no tax advantage at all. Of course, if this were to happen I would expect the savings to be refunded to the people in the form of a general income tax cut, which we all know wouldn't happen. Anything that gets insurance out of the hands of our employers and back under the control of the individual is a step in the right direction. McCain's plan would have started this. Obama is simply looking for a way to create more government revenue and has no intention of getting insurance back to the individual level.