Metro Voice

Health Care Payroll Tax devastating to business and jobs in California

Take action today to stop AB 8 (Núñez). Email or call the Governor and ask him to VETO this disastrous Approach to Health Care Reform

There is no doubt that the current health care system is in need of reform. However, AB 8 (Núñez)is not a health care fix or a health care solution that Californians can live with.

This week the Assembly and Senate passed AB 8 (Núñez) that establishes a "pay or play" system where businesses are required to provide a minimum contribution of 7.5% of payroll to health care or pay into a bureaucrat run purchasing pool program. AB 8 (Núñez) contains no exemptions for small businesses or companies that provide health insurance at a lower cost.

AB 8 disproportionably affects small businesses and will put many out of business
AB 8 applies to those businesses that don’t currently spend 7.5% of payroll on heath care, most of which are small-to-medium sized businesses that can’t afford the increasing cost of health insurance without being forced out of business. There are no exemptions for small business.

AB 8 will slow economic growth, hurt employment and drive jobs out of California
AB 8 is an unfunded government mandate that will cost California businesses an additional $6.6 billion annually. A study by the Public Policy Institute of California (PPIC) on “pay or play” health care concepts showed that “Employer mandates will affect the labor market in ways that include lower wages and, most likely, the loss of jobs.” The fact is that employers faced with the increased costs of providing coverage will have to shift costs to employees and the public in the form of lower wages, layoffs and higher prices – or move their business out of California altogether.

AB 8 does nothing to lower health care costs and will lead to higher taxes
Health care costs are increasing faster than inflation and will, without reforms that lower costs, continue to exceed payroll growth. The State will have to increase taxes, or the percentage required by business, to fund the state-run purchasing pool both now and over time as health care costs continue to spiral out of control. Once the “pay or play” system is in place, the tax can be raised at any time by the Managed Risk Medical Insurance Board, an unelected state board of government appointees.

Take Action Today to Stop AB 8
Email Governor Schwarzenegger


Take Action Today to Stop AB 8
Call Governor Schwarzenegger
 


METRO VOICE IS AN ELECTRONIC GRASSROOTS ADVOCACY program that leverages the voice and credibility of individual members to amplify the Metro Chamber's advocacy efforts.

Make sure your voice is heard. Use Metro Voice to quickly and easily send emails or letters to elected officials. Metro Voice allows Metro Chamber members to communicate directly with elected officals in

METRO VOICE IS AN ELECTRONIC GRASSROOTS ADVOCACY program that leverages the voice and credibility of individual members to amplify the Metro Chamber's advocacy efforts.

Make sure your voice is heard. Use Metro Voice to quickly and easily send emails or letters to elected officials. Metro Voice allows Metro Chamber members to communicate directly with elected officals in support of or in opposition to key public policy issues, and directly supports the Metro Chamber's critical role as the voice of business for the Sacramento region.

Taking positions on policy priorities is important, but effectively communicating those positions to elected officials at the local, regional state and federal level is critical to ensure business interests are represented and for the Metro Chamber is to affect positive change for businesses, our economy and our community.