The Surest Indicator

The surest indicator of how things have changed since the election is that Bush came to Missouri today, but the lead story in St. Louis Today (The St. Louis Post-Dispatch online site) ended up being about the winning Powerball ticket being sold in Missouri.

Bush’s visit was relegated to the back pages; along with an interview with the brother of the man who was arrested for kidnapping the two kids who have been in the news too much; a corpse discovered in the ditch in Centerville; a delay in the Highway 40 construction project; and a pit bull mauling in the bootheel.

Personally, I was interested in the Highway 40 construction project delays.

According to the story:

Bush met at St. Luke’s Health System’s Lee’s Summit hospital with a group of small business owners and employees to discuss how his plan would effect them.

Dan Jones, an engineer for a St. Louis-based computer company, said he’s uninsured because he couldn’t afford the premiums, which he said increased to $400 a month.

“That $4,800 (a year’s worth of premiums) is a lot of money,” he said. “That’s money that could go toward a car or a house.”

Bush said the plan would save Jones more than the cost for an insurance plan.

“Here’s a classic case, a young guy in the market place priced out of the individual market,” he said. “The plan helps him.”

Is there a new math involved here? Can someone explain to me how a tax deduction on the first $7500.00 of a single person’s income tax would save more than $4,800.00 a year?

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5 Responses to The Surest Indicator

  1. Not even if he’s in the highest tax bracket. And people in the lower tax brackets will probably not save anywhere near the tax on $7500, because they may not even have $7500 in taxable income to begin with.

    Small business owners, who may pay most of their taxes towards Self-employment tax, will also see little relief.

  2. Scott says:

    When I see figures like that I wonder what kind of bastards that guy works for? I work for a non-profit (granted it’s a LARGE non-profit), and the most I would have to pay per month if I signed my whole family up (there is a plan called “family”) and picked the most expensive coverage we have is $245. For me alone the total premium is over $400, but I only pay $45.

    That doesn’t mean I think the Bush plan makes any sense. But at some point, employers have to take care of their employees I think.

  3. Shelley says:

    Sterling, it isn’t workable, but you should see the Missouri governor’s plan: I didn’t think anything could be worse than Bush’s plan, but there you go.

    Scott, all the computer consultancy type companies I know of don’t pay any medical: they just provide the option. And it is typically 400.00 per month for a single. About $320.00 is the cheapest I’ve found for self insuring.

    I can’t remember the last time I had paid medical.

  4. I haven’t had fully paid medical since the 80′s. I went without health insurance completely from 1992 to 1997.

    Then I married into coverage and we got the birth of our last child just under the wire before her COBRA expired.

    Now we pay almost $400 a month for a catastrophic high-deductible policy that covers almost nothing. But when my wife broke her leg I was glad we had it anyway.

  5. Yeah, one of the things about working for a university is medical coverage. My wife & I are each covered by individual plans because we work at different institutions. However, our annual cost of living raises have not even kept up with inflation the last few years. Why? Well, I’m on the Faculty Senate & I’ve heard the president & the chief financial officer of the school say quite directly that raises have been small because of the cost of health care. So I still have a better situation than many & I’m grateful for it; but the fact is I’m paying for my health care indirectly in smaller annual raises. Those smaller annual raises, by the way, also mean a smaller percentage of university contributions to my retirement plan. (I know, I hear some folks — very legitimately — exclaim, “Your employer contributes to your retirement plan?!)