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Is Bush43 'Health Care Plan' A R&F Tax Cut In Disguise?

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posted on Jan, 26 2007 @ 08:30 PM
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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 84%.

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]




posted on Jan, 26 2007 @ 08:37 PM
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No I don't understand, because the Democrat's plan is to raise taxes and just hand out the money .... this causes a dependency upon socialism which is the "road to tyranny".

Any tax cut be it $10 dollars or $10,000 USD is a blessing, and it isn't a blessing from the Government, it's something we should be blessing ourselves with in emancipation from Government slavery.

I'm also not sure how exactly you're getting your numbers maybe if you explained better.



posted on Jan, 26 2007 @ 08:42 PM
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Agreed I don't see how it is a bad plan any tax cut is benefitial. Why would you support the progressive tax which only causes it to be more difficult to become more wealthy? If I had my way I'd just stop taxing ALL income.


ape

posted on Jan, 26 2007 @ 08:58 PM
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bush is a moron, so are democrats. these solutions bush proposes only plug one of many holes in a leaking dam and the democrats solutions are socialist regressive ones. how about enacting policies that actually fund these programs properly with a more stable source if income rather than income taxation? let the poverty level get ahead so they can actually rise out of the poverty level to be better able to afford such things? i know 1 thing is for sure I would only have to worry about buying a second home if I was able to keep every penny in my check.

we need to replace our income tax policy, it retards individual growth and individual growth is key for eventual individual prospertity and this is across all lines medical, financial etc.

fairtax.org...

[edit on 26-1-2007 by ape]




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