Does he tell you that if your employee provides you health care, it will now be counted as taxable income? That's quite a tax increase on working people. McCain is trying to bust up group negotiated premiums. Many will now have to individually negotiate and instead of having professional HR people negotiating, it will be every Joe Six Pack Plumber for himself. The insurance companies are going to make a killing in such a scenario.
In some ways, McCain's plan makes healthcare a bit more fair for everyone. Right now, people getting their health insurance through their company have a huge advantage over those who don't. The company can buy insurance packages (which is totally fair) but also doesn't have to pay tax on the health care insurance it provides. This gives it a discount on the 'perks' it gives its employees.
A $12,000 policy will be taxed at X amount. Even at 40% federal tax, the worker would be paying $4,800 in federal taxes on his health insurance from his employer. With the $5000 tax credit, he's not actually paying anything. The only people paying more under his plan are people who have a policy larger than $12,000/yr or are taxed at higher than 40%, federally. "Gold-plated plan" was a good description, need for hairplugs notwithstanding.
And now the self-employed person can
also (effectively) not be taxed when he buys his insurance. McCain's plan, in that way, improves the health insurance system in America.
That all said, Obama's plan is about 10x better, since the health insurance system in America is a huge reason why healthcare in America is so expensive. A
huge reason. The only subsidy (actual subsidy) in his plan is the 50% credit for the small business owner.
