Misrepresenting McCain's Health Care Plan
2:18 PM, Oct 6, 2008 • By GARY ANDRES
The Obama campaign stepped up its rhetoric against the McCain health care plan over the last week with a new series of http://www.youtube.com/watch?v=dNJo0IcJ5oY target=_blank>ads.
But leave it to Paul Krugman at the New York Times to confuse, twist and misrepresent the McCain proposal. In today's column, "Health Care Destruction," Krugman writes:
Krugman distorts the impact of McCain's plan by confusing two tax concepts: the "employee exclusion" and the "employer deduction."
McCain's plan eliminates the exclusion but does nothing to the deduction. Here's how it works:
But McCain's plan also gives that same family a $5,000 health care tax credit, leaving them with an extra $2500 in their pockets.
At the same time, employers still get to deduct the costs of providing health insurance, just as they do today.