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What's with taxing ins. benefits?
What did McCain mean when he said he would tax insurance benefits? Does that mean my insurance benefits will now be seen as actual income? What do you think?
6 Answers
- Anonymous1 decade agoFavorite Answer
According to his campaign website, that is exactly what he means. Insurance benefits will be considered income.
- 1 decade ago
As an example, someone has cancer, the medical cost is $100 thousand, insurance pays $80 thousand leaving you owing $20 thousand. Take $20 thousand from the $80 thousand leaving $60 thousand, take away the $5 thousand McCain;s giving, balance of the benefits you received is $55 thousand, amount taxed as income. But again, if you receive no benefit, you have McCain's $5 thousand to pay for your insurance.
- netjrLv 61 decade ago
Yes. But you would not be required to take the insurance given to you by your company; you could choose to go out and buy your own. McCain's plan gives you that freedom which creates competition (lower rates). Next he gives you a tax credit so you are better off financially and you have more freedom.
National Tax Payers Union says the ave. family of four is $1600 better off with the McCain plan and they have more freedom.
- GabrielLv 41 decade ago
You're exactly right. They'll tax the benefits as income and the money you pay them with will no longer be pre tax dollars.
I don't know how he's trying to get away with this without more public outcry.
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- Lynne MLv 51 decade ago
It's setting a dangerous precedent. It's more expensive to purchase benefits than his tax credit will cover, so more will come out of your pocket. Don't go there. Scary.
- 1 decade ago