Does McCain's "health care tax credit" have to be used for health care?

I'm talking about McCain's proposal of $5000 per couple, $2500 per individual.





Do they give you the money beforehand? (meaning you can spend it on whatever you wish, although they encourage you to buy health insurance with it)?





Or do you have to purchase a plan %26amp; show them the bill in order to get reimbursed for it.







Does McCain's "health care tax credit" have to be used for health care?
You don't pay $5000 less in taxes .. it is a tax CREDIT. And how much cash back you get depends on your other deductions. If you look at McCain's website, the most anybody will get is $3800.





But here is the sad part ... let's say you only earn $35k a year have no healthcare. Then McCain gives you a $5k credit ... you actually get $3200 credit which is paid directly to your health care provider. But if you have kids and your health insurance is $400 a month for 12 months, it won't cover the insurance. You still have to contribute. So you will get bills from your healthcare. Plus that $5k puts you in a higher income tax bracker. That is fine, but don't think that you won't have to kick in a percentage of your own out-of-pocket.





Those making more than $35k may be able to swing it, depending on how many dependents we have ... but those making $35k per household with 2 or more kids probably won't be able to afford the extra insurance premium anyhow.





In other words, if you are a single parent earning less than $50k with a few kids, by the time you pay all of your other living expenses, you aren't going to be buying any insurance under McCain's plan.





That is my take on it.





It is ok for those making above $50k, but for those making less, it really is a scam.
Reply:You never see any of it, it's paid directly to the insurance company not the tax payer. I'm unsure how they figure that it's a tax credit then.
Reply:just a guess, but i think that the credit will come in some form of check or coupon type thing that you can only use at an insurance agency. kind of like a gift certificate for a certain store.
Reply:


One of my friends asked me this sort of questions before,she found helpful here http://www.HealthInsuranceIdeas.info/fre... .



Reply:He admits that the money goes to the insurance provider. You never get a check.
Reply:I'm sure you have to have proof. Although it seems like it, the government isn't THAT stupid.
Reply:Its goes right to your HMO then If your employer pays any of it He will tax it.so No you don't get a check
Reply:dont care for McCain, so dont know "Smack!

lily