posted on Jan, 26 2007 @ 08:30 PM
Bush43 “Health Care” Plan - - - - More Accurate to Say “Wealth Care” Plan.
In 2006, the average cost per year for a family health care plan is $11,480. For a single plan the coat was 4,242. In those cases where the employer
pays part of the plan, workers with family pans pay 27% and the employers pay 73%. In the case of a single worker, he pays 16% and the employer pays
The number of uninsured Americans is estimated to be 46 million. Of that number, 69% have at least one full time worker in the family. These are
called the “working poor.”
Of businesses with 200 or more employees, 98% offer health care insurance. Of businesses with fewer than 200 employees, 69% offer health care plans.
Employers are permitted to deduct their share of the costs as a cost of doing business expense from their gross income. This will amount to $145
billion in 2007 and by 2011 (5 years) this deduction total $890 billion. For comparison purposes, this business deduction is almost double the total
of all mortgage interest deductions claimed by homeowners.
Here follow the current tax rates for a married couple filing jointly, using taxable income, that is, gross income less allowable deductions.
0 up to $15,100 . . . . . . . . .. . 10%
$15,100 to $61,300 . . . . . . . . 15%
$51,300 to $123,700 . . . . . . . 25%
$123,700 to $188,450 . . . . . . 28%
$188,450 to $336,650 . . . . . . 33%
over $336,650 . . . . . . . . . . . . 35%
Health Care Plan. The president proposed to allow persons who do not receive aid in buying their health insurance, as from employers, to take
the following deduction:
If single, $7,500 a year
If married, $15,000 per year.
A deduction - as opposed to a credit - is worth to you the percent of the top tax bracket you are in. Ir you are unemployed, it is worth nothing. If
you had a taxable income of $15,000, if you are single, it would be worth $1,125 off you tax bill. It's worth $1,500 off you tax bill if married. If
your taxable income was $61,300, and you were married, the president’s plan would be worth $2,250 off your tax bill.
OTOH, If your taxable income was $188,450, then you could deduct $4,100 from your tax bill. People earing over $300,000 a year in taxable income would
be allowed to deduct $5,200 from their tax bills.
Now, how’s this work out in real life? OK, say you’re a family of 4 and you made $30,000 last year in taxable earnings. Your tax bill would be
$3,800 on $30,000. The Bush43 plan would reduce your tax bill by $2,250, cutting your tax bill to $1,550. Helpful, yes, there's no denying that, but
can you now afford the average cost of health insurance, $11,480? Answer: No. The extra money is welcomed, sure, but it still will not be possible for
you to buy a family health care plan.
Suppose OTOH you are a 3rd year out of MBA school and a stock broker of reasonable talent. You make $300,000 after tax. Now, let’s play you are on
a strict commission pay plan at Price Waterhouse which does not furnish you a health care plan. But I feel sure you would have one and it’s my
opinion you can afford it. $300K. But look up! The Republicans are giving you a tax break! Your tax bill will be reduced $5,200 a year! “Dam George,
how’d you do that?” Thanks a lot. My wife and I will take 3 weeks in Paris and Rome this spring instead of the 2 weeks we had planned on. You
Republicans really know how to “boost” the economy. He winks.
An unexpected windfall to all self-employed, doctors, lawyers and merchant chiefs making big bucks! The one’s who need it - or deserve it - least,
get it the most!
Poor guy - No real help. Rich guy - another (Republican) tax cut.
Do you understand why the Democrats say this one won’t fly?
[edit on 1/26/2007 by donwhite]