In this Alice-in-Wonderland world of election claims, counterclaims, lies, and bigger lies, one of the more bizarre stories is that of Joe the Plumber, a tradesman mentioned no fewer than a dozen times in the last and final Presidential debate.
Louise at Colorado Health Insurance Insidertook a look at Joe’s financial picture, and how Joe’s finances would be affected by the Obama and McCain tax and health care plans.
But first, a little fact checking. Joe’s not a licensed or registered plumber. He’s never been formally trained as a plumber. He can’t work as a plumber except in a few townships in Ohio. Perhaps it would be more accurate to call him ‘Joe the Plumber’s helper’.
Second, court records indicate Joe earned about $40,000 in 2006 (previous citation).
Here’s how the McCain tax and health reform plans would affect Joe (from Louise’s piece). Note that Louise assumes Joe’s company is earning a profit of $280,000 because that’s what Joe said the company ‘makes’. (which, according to D&B, it isn’t).
“if the business is paying premiums for two families, at roughly $12,680 each, that’s $25,360/year that the business is spending on health insurance premiums and deducting as a business expense. So that money is currently not included in the $280,000 profit the business makes. Losing that tax deduction [per the McCain plan which eliminates the employer deduction for health insurance premiums] would mean that the business would be paying 36% tax on the $25,360 that they currently pay for health insurance premiums. That’s $9,129/year in additional taxes.”
versus the Obama plan, which
“would raise taxes on small business profits (not revenue)[emphasis added] that are over $250,000 (a threshold that the vast majority of small businesses don’t even come close to reaching). In this case, that would be $30,000/year in profits being taxed at the higher rate. The tax rate on that $30,000 would go from 36% to 39%. The difference would be an additional $900/year in taxes for the business. The business would still get a tax deduction for the health insurance premiums they pay, so it would continue to make good business sense to offer group health insurance for the employees.
So Obama would increase taxes on the plumbing business by $900/year (if the business is making an annual profit of $280,000).”
But Joe’s company doesn’t make anywhere close to that – in fact annual revenues (not profits) are about $100,000.
The net?
“McCain would let the business keep that $900/year, but he would take away more than $9,000 in tax savings that the business gets by deducting health insurance premiums.”
There’s a bit more to this. If Joe is healthy, he may well qualify for coverage under the McCain plan – he’s 34, single, and works out, so insurance companies will want to take his application. But if he has an pre-existing conditions, chances are very slim he’ll get coverage at a rate he can afford (remember he makes $40,000 or so a year). He would be able to get coverage under the Obama plan, regardless of pre-existing conditions – coverage that would likely be more expensive, but would protect Joe from cancellation and ensure he has comprehensive benefits.
We don’t know if Joe has insurance right now; if not he’s covered if he gets injured on the job through workers compensation. If it’s not occupationally-related and he doesn’t have insurance, he’s going to get charity care (there’s no way Joe can afford a day in the hospital on his income).
Oct
17
Listening to the mainstream media these last few days I’ve learned a few things about the GOP’s VP nominee from MSNBC, ABC, CBS, CNN, N.Y. Times, Boston Globe et al, but also had to learn a few things on my own:
1. From the media I learned Sarah Palin’s husband has a DUI conviction from 22 years ago. On my own I learned that Ted Kennedy (hero of last week’s tribute at the DNC) was drunk while driving a car off a bridge in Chappaquiddick. That same crash killed a young campaign volunteer with whom he was having an affair. Oh, and that woman was pregnant with his child.
Mr. Palin’s (who is not running for office) DUI came a mere 4 years after Barack Obama (who is running for president) stopped using cocaine and marijuana (by his own admission in his autobiography).
Shocking – it’s OK for the presidential candidate to use drugs or the party patriarch to kill someone
2. From the media I learned that Sarah Palin’s daughter is pregnant.
On my own I learned that Joe Biden’s (the other VP candidate) son was paid a large amount of money as a consultant to credit card company MBNA.
That same company had business before Senator Joe Biden concerning regulation of consumer credit practices. After the company paid a hefty sum to Mr. Biden’s son, he voted in favor of legislation to help that company.
That same son, Hunter, is also engaged in a legal investigation and suit for defrauding a former business partner
Shocking – it’s a crime for the republican VP candidate to have a child who’s pregnant even though it’s irrelevant to how she performs her job.
It’s ok, however, for the democrat VP candidate while a senator to vote in favor of a company who paid his son over a quarter of a million dollars.
3. From the media I learned that Sarah Palin should be considered “selfish” for agreeing to run for VP knowing about her daughter’s condition. Knowing that her public role would bring extra scrutiny on the family is selfish and she should have declined to protect her child (actually heard this on ABC this weekend).
Strange – the same people who said Sarah is selfish for running for VP did not seem to care about any impact on Chelsea when Bill Clinton had his dalliance with Monica Lewinsky. That was a private, personal matter you see.
4. From the media I have learned to be “concerned” that Sarah Palin probably won’t be able to manage her family and do an effective job of being VP at the same time.
Funny – I never heard anything about Hillary’s ability to support Chelsea while re-doing healthcare or any of the other feminist icons who say you can balance work and family. They also never mention that Barack will have to balance time with his children while meeting with heads of rogue nations or how Joe Biden’s kids don’t even have a mom and will be fighting for his time while he hosts white house coffee fundraisers and sells nights in the Lincoln bedroom.
5. From the media I have learned that Sarah Palin is “too inexperienced” to be a heartbeat-away from the presidency.
Apparently taking on corruption in your own party and running a state that’s the same size people-wise as Delaware (hint hint: that’s where Joe Biden is from) is not really experience. However, time spent as a “community organizer” and less than 180 days in the senate where you’ve authored no significant legislation is just the type of “change” we’re looking for from the top of the ticket.
Funny – inexperience at the top of the ticket is a mantra for “change” and “hope” while strong practical everyday experience as the #2 is cause for concern.
6. From the media I learned that Sarah Palin’s husband once got a ticket for fishing without a license.
I haven’t heard much about the fact that if he were still a practicing attorney, the VP candidate Joe Biden would be disbarred for plagiarism not once but multiple times.
It’s ok to break the rules if you’re a democrat candidate but not Ok if you are the spouse of a republican candidate.
7. From the media I learned that Sarah Palin doesn’t know much about Iraq ; in fact we wonder if she even knows where it is.
Sarah’s son volunteered into the US military and is now deployed in Iraq . I guess that doesn’t count. Sarah has spent more time with troops in Iraq (as commander of the Alaska National Guard she visited Iraq last year) than Obama has even while running for president. In fact, when Sarah went to Iraq she spent time with the troops. When Obama went there, he skipped a base visit to instead go work out at the Ritz Carlton .
8. From the media I learned that Sarah Palin is a “lightweight” and she better be a “quick study” to keep up with this team.
Funny, nobody is talking about how, after Barack Obama had “visited 57 states” according to him he only had “5 more to go” or endless other stupid gaffes that expose who he really is.
9. From the media I have learned that (gasp!), Sarah Palin’s husband was once a registered member of a 3rd party that favored states’ rights (man, this is really bad stuff).
That same media has been silent to the story that when Barack Obama announced his first senate run, he did so in the home of William Ayers. Mr. Ayers is an un-repentant terrorist convicted for bombing the pentagon. This same Mr. Ayers said on 9/11 that he and his group did not do enough to harm our military and he wished he had done more. During the same time as that comment, he was serving on a board with Barack Obama. All notes and information about their serving together is now locked up by the corrupt Chicago machine and reporter access to those records are being blocked by the Obama campaign
If we’ve had any doubts about the bias of the media, it’s pretty clear now where they stand. Pass this on to some of your friends who are on the fence and who get all their information from Katie Couric, Wolf Blitzer, Tom Brokaw and the gang. This is egregious and corrupt. The only way to stop it is to spread information using other outlets and make these guys irrelevant.
Nice homework Joe! Your comments are the only thing I’ve enjoyed reading lately on this blog.
All the names you listed work for corporations. Corporations out to make a profit. People watch and listen to them. This makes owners of said media companies money.
If you want to whine about capitalism, move somewhere that has governmental control over news and media outlets.
If not, get over it. It’s all about the Benjamins, slick.
I am trying to figure out how the posted rant relates to the article??? I second your good work on the blog. It’s refreshing to have access to clear headed thinking.
Hey Joe (the poster, not Paduda) – I don’t know what “media” you’re listening to or where you’re learning things “on your own” but you’re wrong on so many of your points is laughable.
1) I’ve learned about everything you’ve cited that you learned “on your own” in the mainstream media. Maybe you should change what you read and watch. (You learned “on your own” about Ted Kennedy and Chappaquiddick?!? Or Biden’s son at MBNA? Um, where have you been living? In a cave?)
2) You say Sarah Palin’s been to Iraq? Not so. Never. On her only visit outside North America for which she got her first ever passport, she made a brief visit to Kuwait and visited the border – never crossed it. So she’s lying every time she says she’s been to Kuwait. Since you’re so big on learning “on your own”, check your facts. (Oh, one more thing. She says she’s been to Ireland. Yea, refueling at the airport – never got off the plane. So I guess it’s not technically a lie.)
3) The third-party that the Palin’s are involved with that supports “states rights”? How ’bout those “states rights” including secession from the United States? Whose leader openly says he “hates” the United States? And to whom she said “Keep up the good work.” This isn’t something from her deep-dark past, it’s from SIX MONTHS AGO! How does THAT “put America first”?!?
I could go on and on. Maybe the reason why people DON’T go to alternative outlets for their news as you suggest is because they are WRONG! I’ll stick with the mainstream media, thank you.
It is unfortunate that this respected blog on issues relating to healthcare, managed care and insight into various health plans and the political implications therein has morphed (for the moment) to political diatribe. Let’s focus on the issues not the personal … there’s way too much at stake. Joe Paduda…please regain control of your sight and it’s mission.
Oh – and one more thing I can’t resist, Joe. You and Fox “News” are the only ones who insist on chanting that Obama launched his political career in William Ayer’s “living room”. Again, not so. He’s never been in Ayer’s living room. He launched his career at a coffee in a hotel ballroom. And if you watched the mainstream media you seem to detest, you’d know that Ayers and Obama were both appointed to the same board by Walter Annenberg. Know who he is? Has your independent learning told you that he was a leading Republican, former Reagan pal, Reagan administration insider, ambassador and more? And the other members of the board include stalwarts of the Republican party and conservative movement? Are they all just as guilty by their association as Obama? You’re so big on your independent research, do some.
Joe
Please go back to drudge.
Jonathon- thanks for the comment. With all due respect, health policy us a topic covered here frequently, more so now due to the season. I am always open to debate and disagreement as long as it includes citations from those who disagree. Louise’ post is accurate, well-researched and well written. It also provides a clear view of the fallacies of McCain’s argument as well as the real impact of his policies.
If that isn’t worthy of our time and consideration, nothing is.
Joe (Paduda) – the entire first comment is just a spam copy/paste of an email fwd that has been going around. They guy didn’t even read your post, has no interest in a discussion, and will unfortunately never be back to read the well thought out responses. The exact same thing is all over the internet. It is too bad others even wasted their time reading what it said.
Anyway, I’ve been trying to research whether Joe (the plumber) has health insurance and what he has, but have come up dry. I wonder if anybody else has seen or heard this? My initial guess would be that the business doesn’t have an employer sponsored health plan. And my guess, just by watching him, is that he has had trouble getting individual coverage to make him an offer he likes due to high blood pressure pre-x.
just kidding
I linked this interesting post to my today’s cartoon.
To say that there is no Bias in the media is just silly. I actually give “alternative media” outlets credit for not trying to hide their bias and would actually like to see everyone do the same. The problem is that most people have the mental capacity for news items like that of a second grader learning about the intricacies of quantum physics. We would much rather hear about Madonna’s divorce or Boy-George-wanna-be guy crying (literally) for all of us to “…leave poor Brittany Spears alone! She is a good mother!” The ONLY truly unbiased reporting that I have seen is on CSPAN; and we all know how successful CSPAN has been is gaining market share (I believe they rate just below re-run infomercials for the Flowbee).
Here is my guess; less than 5% of the “zealous” supporters of ANY political issue or candidate have done ANY research on that topic. And the reality is that it has never been easier to get information. Before the coming of age of the internet (made possible by the invention of electricity, plastics, and the semi-conductor all by Al Gore), information was hard to get. But as things have gotten easier, we have gotten lazier! Today, if you can’t get your point across in a video of 1 minute or less, you are doomed. So, the news has become less about reporting and more about marketing. Don’t forget; news companies are in business to make money. And let’s face it, left wing ideology is usually more glamorous to package and sell. No one wants to watch a show called “Johnny’s dad’s company got a tax break that enabled them to re-invest in new equipment that kept their company competitive with other world producers so Johnny’s dad kept his job and mom made tuna casserole and they celebrated by going to the county fair.” Instead, people want to watch “Johnny’s daddy company stole his pension and now Johnny’s family lost everything!” Conservative, by its very definition is boring! Liberal is exciting, new, and challenging. So what do you think we see more of on TV?
Conversely, radio is DOMINATED by conservative media outlets. Why… most conservatives watch less TV. They tend to be a bit older, white collar, and have families. So they can listen to the radio when they are between sales calls, on business travel, or commuting to and from work every day. Their lives are less glamorous to the sect of our population inspired by a man running for president that shares a campaign slogan with child cartoon star Bob the Builder (“Yes We Can!”).
It is natural for systems to break down. It is natural to question authority or the status quo. And throughout mans history, Artists, writers, and poets have often identified those things wrong with the establishment of their respective times. And please do not misinterpreted what I am saying here; I give them credit for doing so! Theirs was often the only voice uniting people in circumstances where information was often controlled and censored by the people in charge! But the fact remains that these people have, since the beginning of time, had a slant against what was and towards what was wrong! So when you look at the “creative” population of actors, poets, painters, and writers, you would expect to see a similar ideology. And guess what, you do! People in the media tend to be part of this group. There is nothing wrong with it, but not acknowledge it is just inane.
The problem is that when you question everything; and everything is wrong, you are left with nothing! So as we as a people migrate more and more towards the idea that everything is wrong, the inevitable conclusion is that nothing is right! You get a population that believes everything that happens to them is the fault of someone else. That anything they do or any rule they break is OK regardless of the consequences because those “rules” were put in place by a government that is “all wrong”. It debunks anyone’s success because it occurred in a society that is all corrupt. And if anyone disagrees with these assertions, that very act in and of itself proves that they are a part of the corrupt and malevolent establishment that is to blame for everything that is wrong!
But, I digress. In fact, if my original assertion is correct, you stopped reading this once I referenced the Flowbee.