On Sunday, Sen. John McCain (R-AZ) admitted that his health care plan raises taxes. “[O]nly those with the Cadillac gold-plated health insurance policies today are the ones who might suffer from it,” he claimed. Today, McCain spokesperson Tucker Bounds, however, contradicted McCain, claiming that it is a “100 percent lie” to say that McCain’s health care plan would be a tax increase:
First of all, is John McCain’s health care plan actually effectively would do wonders for the middle class. … Health care would get better. It would be more accessible to middle class families … What is campaign is doing is advertising in complete falsehoods. They’ve said that John McCain wants to tax health care. It is a 100 percent lie.
Bounds claimed that the McCain plan would do “wonders for the middle class.” But, because McCain’s tax credits are indexed to inflation — and not the faster growing cost of health care — his initial $5,000 offering depreciates every year, forcing families to pay more for their health insurance. As a recent CAPAF report states, the largest tax hike falls on the middle class.
For a couple earning $40,000 and paying $13,800 for insurance, “McCain’s new tax credit would cut their taxes by $50 in 2009, but because the credit quickly falls behind rising premiums that are the basis of the current tax break, the family would pay $1,169 more in taxes in 2013…[and] would pay $2,809 more in taxes by 2018”: