Is McCain's $5,000 tax credit/health care reimbursement a 1-time payment or a yearly credit for people?

I haven't really heard anything about McCain's proposal with the $5,000 health care reimbursement or tax credit...or whatever he calls it as being a yearly payment/credit for people. If it's a one-time payment, then that's not going to do anything, but allow those without health care to afford it for like what 8 to 12 months, then they are back to where they were before.

Is McCain's $5,000 tax credit/health care reimbursement a 1-time payment or a yearly credit for people?
Most people can't pay up front and then wait until tax time to get money back. $5,000 is nothing--a few visits, an MRI or two, not even a small surgery. It's ridiculous.
Reply:it's a 5,000 dollar tax credit, but he's going to tax you on the money that you pay for your healthcare to your employer. For example: if you pay 100 dollars a week, X-52 weeks=5200 dollars...cheap for health insurance right? and nobody has it that cheap. But if you're taxed on that 5200 dollars, you'll pay around 1700 dollars in taxes on that money. Is that right?


So real money situation...I pay 8.27 per hour to my insurance...if I work 2000 hours a year= $16,540*.33=5,458.20...HMMMMM...seems that I'm going to get screwed by McCains policy!


by the way...the .33 is the percentage that you'll get taxed to...if you don't believe it just do the math of your last tax return...
Reply:It is a yearly credit that you have to pay income taxes on. So really, it isn't a credit. Right now, any $ you pay for health care insurance is a tax deduction. That means you don't pay income taxes on the money you paid for health care insurance.





What's up with the "thumbs down" on people who post that it is a credit for INSURANCE. No "thumbs down" to the person below who pointed that out, as I did.
Reply:He's proposing a refundable credit that will be a permenant part of the tax code. You'll get the credit each year.





(Right now there are only two refundable credits: additional child tax credit and earned income credit. There are many "non-refundable" credits, which means you have to owe taxes before you can take them.)
Reply:I just have to comment on "Anna P" above. The credit is not to pay for all medical bills, it is to acquire and pay for healthcare insurance premiums.
Reply:Should be a yearly credit and a good idea for those that work and pay their own health care. Most people that pay their bills and work hard don't have many write offs.
Reply:I was under the impression it was a one time deal