Posted by Jon Fleischman at 12:00 am on Jun 08, 2007 Comments Off on 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