Does Senator McCain’s Healthcare Credit work for you?

I wanted to see if someone earning less than $25,000 a year would benefit from Senator McCain’s Credit for Healthcare. So here are the results.

Premium on Presbyterian healthcare plan 185.35 X 24 pay checks a year = $4,448.40

5,000.00 - $4,448.40 = 551.60

Tax rate of 10% on earning results in tax of $444.84 per year.

So Taxpayer pays for a single individual $4,893.24 and receives a credit of $5,000.00 with a net savings of $106.76. Now that does not include dental or vision which would raise the cost and the tax even more on the benefits.

Dental and Vision Premiums: 25.02 X 24 = 600.48 + Tax 60.05 = 660.53

Result of 4893.24 + 660.53 = 5,553.77

Loss of 553.77 per year in cost over credit.

It would not begin to cover the expense of a child added to the health insurance. End result is that this plan is a failure for all levels of income and would be an increase in taxes on middle class families and result in higher cost for families. The insurance companies would be the only ones to benefit from this plan. Would he require people to buy healthcare and how would they pay for it up front if they already could not afford the insurance? Senator McCain clearly needs to retake a few classes in finance and economics.