Read My Lips
Feb 20th, 2008 at 2:53 pm by Susie
So McCain is now promising “no new taxes.” But the centerpiece of the health care plan he’s pushing is apparently an end to the employer health care deduction, which would suddenly transform about $1 trillion in currently untaxed wages into…taxed wages. So there’s all this money that employers currently don’t pay taxes on, and under McCain’s plan, they’re going to pay taxes on it. Taxes they didn’t have to pay before. Can someone explain to me how this isn’t a new tax?
While you’re at it explain how employers are going to go for this.
Ten Bears,
Can you say “pay cuts?” There, I thought you could.
As long as executive compensation keeps growing,
then everything’s all right.
It’s still taxed wages. See? Nothing new.
It’s not a new tax the same way Regan cut taxes while getting rid of most interest deductions such as on auto loans and credit cards. Which had the two fold effect of raising the average tax bill and leading to the growth of home equity loans.