The plan to raise a 7.5% tax on employers, either into a direct health care plan or paid into a state fund, known as AB 8 was the topic at a press conference at the main Capitol Press Room, #1190 this morning. Assembly Republican Leader Mike Villines and Senate Republican Leader Dick Ackerman led the conference in exposing the perils for the business and job climate for our state should AB 8 become law.
Several speakers advocating for small businesses spoke as well, including John Kabateck of NFIB, featured in today’s FR, who highlighted the critical role that small businesses play in California’s economy and job market, including that AB 8 would likely cause the loss of 249,000 jobs, mostly entry level, service and construction that new employeess need to enter the work place. This could mean 1/3 of all new jobs over the next 5 years.
Other speakers spoke of how it affects their own small business and that it’s a disincentive to even hire employees to begin with, including James Duran of the California Hispanic Chamber of Commerce with comments on how it hurts his members.
The fact that this is being pushed on a simple majority vote, instead of a 2/3 that a tax increase would require makes this proposal run afoul of constitutionality. The Governor is saying he will not support a majority only partisan vehicle, which spells pretty certain doom for AB 8, was the takeaway point. Republican proposals to help improve the health situation, that were defeated party line in committee, were not allowed to be part of a new solution, one that cuts costs and allows more consumer choice of health care and insurance options, as well as incentivizing consumers to care
about what the health care they receive costs will continue to be our focus. This tax increase only Band-aids over a failing structure of unnecessary high cost, litlgation, and government control of something it cannot even contain in a highly controlled setting like a prison system.
If the state can’t get health care right with 170,000 inmates in a confined space, instead is at gunpoint of a receiver with a blank check and a Brinks truck backed up to our state treasury, how in the world is AB 8 type thinking going to do it for a population of 37 million?
July 12th, 2007 at 12:00 am
Never letting the facts get in the way of a good story, here’s a few that should be added:
* 8 of the 14 Republican proposals for health care reform — largely backed by the big insurance companies — were not heard in the committees at the requests of their Republican sponsors. In other words, they were so half-baked, the authors were embarassed to present them.
* Assembly Republicans have no comprehensive health care reform plan.
* AB 8 is not a tax, otherwise it would not have been able to be passed with a majority vote. The Legislative Counsel keyed the bill as a fee, which it is.
* AB 8 is not a government health care plan (Mr. LaMalfa must be confusing it with SB 840, the single payer plan). It relies on the existing employer-based health care system.
* The Governor has not said he will veto AB 8. In fact, many of the principles of AB 8 are similar to those of the Governor’s concept. Unfortunately, the Governor has not submitted any legislation on his concept.
* If Mr. LaMalfa doesn’t favor government involvement in health care, perhaps he should propose the elimination of MediCare, and see how well that goes over with the elderly constituents in his district.