On Fri, Oct 10, 2008 at 8:57 AM, Erika wrote:

>
> Let's say the BC/BS coverage costs $10,000 a year for nice round numbers.
> The employer pays $8000 of it.
> The employEE pays the remaining $2,000, before taxes.
>
> Over the course of a year, another $5,000 comes out of pocket to pay for
> deductibles and copayments.


$5,000 a year for deductibles and co-payments? That is not a typical year in
my book.

As I said, I think $10K a year is a high number, but let's take that as the
number. Increase your income by $10K for the purposes of taxation. To be
easy, let's say you pay at a 30% rate, so you would owe $3000 in taxes on
that benefit. McCain will give you a $5000 tax credit, meaning he just put
$2000 in your pocket. Note- that is not a deduction, it is a tax credit.


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