In their Wall Street Journal piece yesterday, Jason Furman and Austan Goolsbee, economic policy advisors for Obama, highlighted the policy detail McCain prefers to downplay.
…Sen. McCain’s plan does include one new proposal that would result in higher taxes on the middle class. As even Sen. McCain’s advisers have acknowledged, his health-care plan would impose a $3.6 trillion tax increase over 10 years on workers.
Sen. McCain’s plan will count the health care you get from your employer as if it were taxable cash income. Even after accounting for Sen. McCain’s proposed health-care tax credits, this plan would eventually leave tens of millions of middle-class families paying higher taxes. In addition, as the Congressional Budget Office has shown, this kind of plan would push people into higher tax brackets and increase the taxes people pay as their compensation rises, raising marginal tax rates by even more than if we let the entire Bush tax-cut plan expire tomorrow.
Got that? McCain’s hollow healthcare plan is bad enough, but the fine print includes a possible tax increase on tens of millions of people in the middle class.
So. McCain’s pushing a tax hike on the middle class. You’d think that this would be front-page news in all our big papers, and the lead story on radio and TV newscasts. But you’re probably only hearing about it now through this website — or maybe through The Carpetbagger Report or Matt Yglesias. And your non-blog-reading rellies probably haven’t heard about it at all.