Saddleback Civil Forum: on Health Care

John McCain: FactCheck: McCain’s $5,000 health tax credit would be taxed

But he failed to mention what he would also take away. Under his plan, workers would be taxed on the value of any health benefits paid for by their employers, which isn’t the case under current law.

McCain didn’t include that fact in an ad his campaign aired in May touting his health care plan, either. As we said at the time, the credit isn’t a $5,000 windfall--it’s designed to cover the increased taxes families with employer-sponsored insurance would have to pay.

[Our experts tell] us that there would be “a lot of winners and losers” under McCain’s plan. Those with lower incomes and employer-sponsored insurance might fare better, because they’d be taxed at a lower rate than those in higher tax brackets.