Someone (I forget who) asked:

And second, it's not as if he's going to send you a check for $5,000. You just get a $5,000 credit on your income tax. In short, if you buy health insurance, you can deduct up to $5,000.

And others echoed the thought.

You're confusing "credit" and "deduct", which are not the same. A credit is worth a lot more than a deduction. A deduction merely reduces the amount on which the tax is figured, at whatever rate applies. A credit is essentially giving you money to pay the resulting tax bill.

In effect, assuming your top tax bracket is 10%, a dollar of tax credit is worth as much as $10 of deductions.

While I'm not for McCain or his health proposal, it's only fair to be sure to understand what it really is.

Dave Oesterreich