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This is how I understood it:
1. Your employer provided health benefits would be treated as taxable income, and employers will no longer be able to claim a tax deduction for the cost of providing their employess with benefits?
2. Those who do not have employer provided insurance will be able to claim a deduction to help offset healthcare costs - $5000 per family / year, $0 for individuals?
So in essence he is going to penalize employers for providing health benefits, and also penalize those who receive benefits from their employer. In other words, employers and employees will immedeately experience significantly increased costs if they participate in a healthcare plan. But if you buy your own plan independantly, you'll get a very slight tax break (compared to the cost of a plan that it, as I can't imagein a healthcare plan that would provide coverage for a family for under $5,000 a year).
Please let me know if I've got this right?
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