The magic fairy dust of tax credits

John McCain came out today with what he thinks is a solution to the vast numbers of health uninsured, largely echoing the standard GOP line that tax credits solve all life's ills, but there's a bottom line fallacy in the fairy dust of tax credit solutions.

In general, a good majority of the people who need help don't make enough to pay any significant taxes, so tax credits are worthless to them.

(The McCain plan, as detailed today by surrogates, not the candidate, does include something they're calling a "tax rebate" which is, in effect, the government paying no-tax individuals directly.)

The main criticism of the McCain proposal, is that companies would have no incentive to offer coverage, meaning more individuals would be going to insurers as individuals, shifting more power to the insurance companies, meaning higher prices and a tougher insurer vs. individual relationship when problems arise.