Today’s Commentary: Leg. Counsel: Charges In Gov’s Health Plan Are Taxes NOT Fees!
Republican Assemblyman Rick Keene submitted the healthcare proposal from Governor Schwarzenegger to the independent Legislative Counsel for an opinion on whether the charges proposed by the Governor on employers, hospitals and surgeons are a tax increase as defined by the California Constitution. Undoubtedly Keene had to submit this question to the Counsel’s office because the Governor, who campaigned with an iron-clad promise that he would never ever raise taxes, has been characterizing these charges as "fees" — arguing that that there is a ‘hidden tax’ on Californians (the ‘cost’ of covering uninsured Californians) and therefore these charges, because they are part of a plan that purports to reduce this ‘burden’ on all of us, is a fee and not a tax. What are the charges? Increased payroll taxes, and increased income taxes on hospitals and doctors! Well, it comes as no surprise that the Legislative Counsel has made it very clear that, "…the provider contribution that would be imposed pursuant to the proposal would not constitute a fee and, as a result, would be… Read More