Biden On McCain's Health Care Plan

Biden was misleading but not totally wrong on the tax ramifications of McCain's health care plan.

He taxes as income every one of you out there, every one of you listening who has a health care plan through your employer. That's how he raises $3.6 trillion on your -- taxing your health care benefit, to give you $5,000 plan, which, his website points out, will go straight to the insurance company. And then you're going to have to replace a $12,000 -- that's the average cost of the plan you get through your employer; it costs $12,000 -- you're going to have to pay -- replace $12,000 plan, because 20 million of you are going to be dropped.

McCain's plan WOULD tax the value of health benefits -- but for most people, the tax credit would offset that tax increase. The 20 million is the number of people who would be dropped by their employers according to a critique of the plan published in the policy journal Health Affairs.

-- Julie Rovner

10:01 PM ET | 10- 2-2008 | permalink

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