Comments on: McCain’s Tax Plan Better for the Middle Class http://www.theatlanticright.com/2008/10/23/mccains-tax-plan-better-for-the-middle-class/ Because Common Sense Transcends Distance Mon, 06 Feb 2012 06:43:24 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Grewgills http://www.theatlanticright.com/2008/10/23/mccains-tax-plan-better-for-the-middle-class/comment-page-1/#comment-74525 Grewgills Fri, 24 Oct 2008 20:38:54 +0000 http://www.theatlanticright.com/?p=7929#comment-74525 Sorry, I used the math from McCain's website. Sorry, I used the math from McCain’s website.

]]> By: Ken http://www.theatlanticright.com/2008/10/23/mccains-tax-plan-better-for-the-middle-class/comment-page-1/#comment-74383 Ken Fri, 24 Oct 2008 00:44:34 +0000 http://www.theatlanticright.com/?p=7929#comment-74383 Grewgills, If you give examples you should first know what you are talking about.  Here's the right math based on 2008 brackets: Current Tax Liability for married couple making $55K = $7447.50 $16050 @ 10% = $1605 $38950 @ 15% = $5842.40 Under the McCain plan assuming health benefits worth $12K for a total income of $67000 $16050 @ 10% = $1605 $39050 @ 15% = $7357.5 $1900 @ 25% = $475 McCain propose allowance for health care = $(5000) Total Liability = $4437.50 Grewgills,

If you give examples you should first know what you are talking about.  Here’s the right math based on 2008 brackets:

Current Tax Liability for married couple making $55K = $7447.50
$16050 @ 10% = $1605
$38950 @ 15% = $5842.40

Under the McCain plan assuming health benefits worth $12K for a total income of $67000
$16050 @ 10% = $1605
$39050 @ 15% = $7357.5
$1900 @ 25% = $475
McCain propose allowance for health care = $(5000)

Total Liability = $4437.50

]]> By: Grewgills http://www.theatlanticright.com/2008/10/23/mccains-tax-plan-better-for-the-middle-class/comment-page-1/#comment-74371 Grewgills Thu, 23 Oct 2008 22:36:44 +0000 http://www.theatlanticright.com/?p=7929#comment-74371 <strong></strong>Whether the McCain's health plan actually saves you any money at all, not just relative to Obama's plan depends on several factors.  Are you are single?  If so the tax credit is $2500, not $5000.  Will including your health insurance as income change your tax bracket?  If you are earning below 15K and are lucky enough to be provided health insurance then you will certainly be bumped up a bracket and pay 5% more on all of your income.  If you are making in the high 40Ks and have a particularly good plan or if you are making in the 50Ks with an average plan you will be bumped up bracket and have to pay 10% more on all of your income. Example Joe and Jane together pull in $55K/yr in taxable income and have employer provided health care worth $12K.  Their current tax liability is $8.25K (15% of 55K).  Now under McCain's plan their taxable income jumps to $67K, there tax bracket changes from 15% to 25%, and their new tax liability is $16.75K (25% of 67K).  Joe and Jane's federal taxes more than doubled under McCain's plan.  If Joe were single and bringing in 55K he would be even worse off. Whether the McCain’s health plan actually saves you any money at all, not just relative to Obama’s plan depends on several factors.  Are you are single?  If so the tax credit is $2500, not $5000.  Will including your health insurance as income change your tax bracket?  If you are earning below 15K and are lucky enough to be provided health insurance then you will certainly be bumped up a bracket and pay 5% more on all of your income.  If you are making in the high 40Ks and have a particularly good plan or if you are making in the 50Ks with an average plan you will be bumped up bracket and have to pay 10% more on all of your income.

Example
Joe and Jane together pull in $55K/yr in taxable income and have employer provided health care worth $12K.  Their current tax liability is $8.25K (15% of 55K).  Now under McCain’s plan their taxable income jumps to $67K, there tax bracket changes from 15% to 25%, and their new tax liability is $16.75K (25% of 67K).  Joe and Jane’s federal taxes more than doubled under McCain’s plan.  If Joe were single and bringing in 55K he would be even worse off.

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