This morning I wrote about efforts to pass Speaker Karen Bass’ AB 1422, and why Republicans should not support it. The bill seeks to restore some of the welfare cuts that came out of the June budget revision by going after, as some would characterize it, "free money" — referring to grabbing federal tax dollars (hardly "free" to the taxpayers). Through slight of hand, the bills INCREASES STATE TAXES in order to qualify for federal money. Then uses some of that money to "make whole" those stuck with the higher taxes. The remainder is — "free money" courtesy of Uncle Sam, right?
Better yet still, those to be taxed (and reimbursed) WANT this, as they will profit when the "free money" is spent.
So it’s all good, right?
WRONG.
This devilish arrangement is bad in many ways, both on a policy level as well as politically.
I make the policy argument in my commentary, but to reiterate — the so-named Healthy Families program is sick. It doesn’t work well, and is in need of an overhaul of the sort that liberal ideologues are not in a hurry to do.
It is also very bad policy to voratiously go after federal tax dollars if we, even at a state level, feel that those federal tax dollars could be better spent elsewhere.
Politically speaking, Republican votes for this provide patina of bipartisanship for a tax increase, for the Healthy Families program (as currently devised) and make it very hard for the electorate to understand who are the friends of the taxpayers versus the proponents of an ever-expanding welfare state.
If ever there was a good time to vote against a bill, this is it. Instead of playing game to try and get "free money" from the Feds, let’s instead tell them to use the money to lower federal tax rates and help our nation grow itself out of a recession.
September 3rd, 2009 at 12:00 am
I am a pediatrician and have worked in Orange County for over 25 years. I know the clear difference that Health coverage and care can have in the lives of young children and their families. AB 1422 will help stabilize Healthy Families (California’s state children’s health program). 87,000 Orange County children are currently receiving benefits and up to half could lose their coverage if this bill does not pass. It deserves bipartisan support. AB 1422 brings in more money to these programs than it takes from them in the tax, there is no registered industry opposition to the bill, and the Association of California Health Plans supports it. AB 1422 also would increase the modest premiums under Healthy Families only for those at over 150% of the poverty level. Pediatricians in our county recognize the immense importance of this bill to children and I encourage Republican support in the Assembly. Marc Lerner