A Tax On Health Insurance Benefits
Now ok with Obama

Obama pitched an ad against John McCain during the election over McCain's plan to tax health insurance benefits. However, he left out the fact that McCain was planning to give up to a $5,000 family ($2,500 single) tax credit. 

According to a New York Times article, Obama advisers say that he will not oppose congress if congress wants to tax health insurance benefits. What gives?  

An average family policy costs $12,000.00 a year. Taxed at 30%, the cost would be $3,600.00 more in taxes. Offset that with the "up to" $5,000.00 tax credit, which means the tax payer actually subtracts it from his total family taxes for the year, and he would not actually pay more federal taxes. But nothing is saying what states that tax income plan to do.

The plan is to allow a way for those who are not covered through an employer to receive a tax break on the cost. But I say, then just let them have the credit. 


 Debra J.M. Smith