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CA: Expand coverage without raising taxes (When is a "tax" a "fee"? Ask aRnold and the dems.)
LA Daily News ^ | 2/15/07 | Chuck Devore

Posted on 02/18/2007 9:48:16 AM PST by NormsRevenge

ARE Californians taxed too much, or not enough?

Taxes are the central question of how to fund Gov. Arnold Schwarzenegger's massive $12 billion expansion of government-run health care with its 4 percent payroll tax, 4 percent hospital tax and 2 percent doctor tax. Ironically, Schwarzenegger lambasted Phil Angelides during last year's gubernatorial campaign for wanting to raise taxes by $7 billion to create a new government health care entitlement. Angelides argued mightily that his proposal amounted to fees, not taxes. But the governor called Angelides' "fee" a "tax," so a "tax" it was. Now that Schwarzenegger is proposing a government health plan that is $5 billion larger than Angelides' proposal, Schwarzenegger has decided to call his three new taxes "fees."

The reason the difference between a "tax" and a "fee" matters has to do with the required vote thresholds in the Legislature. Tax increases need a two-thirds vote for approval, while fees only need a simple majority. Republican legislators believe that these fees are really tax hikes and that a two-thirds majority vote should be required to approve them.

If a majority-vote "fee" increase is rammed through the Legislature with the help of Democrats, lawsuits will be filed to block the tax hikes to defend the rights of taxpayers and the two-thirds constitutional requirement.

Adding further difficulty is a recent federal court ruling that struck down a Maryland law aimed at forcing Wal-Mart to provide its employees with health care benefits equal to 8 percent of its payroll costs. The court held that Maryland's so-called "Fair Share Health Care Fund Act" violated federal benefits law. This ruling means Schwarzenegger's proposed 4 percent jobs tax for health care may be illegal under federal law.

In 2003, amidst soaring workers' compensation rates and rising taxes, California's business-tax climate ranked a dismal 43 among the 50 states, according the Tax Foundation. California's ranking improved to 38 of 50 in 2004 after Schwarzenegger signed workers' compensation reforms and rolled back Gray Davis' tripled car tax. Then California fell back to No. 42 in 2006, and declined again this year to 45.

More importantly, our western neighbors offer powerful incentives for California businesses to expand out of state, with Nevada's business-tax climate ranking fourth best in the nation, Oregon 10th, Washington 11th and Arizona 28th.

So, it would appear that California is overtaxed, especially in comparison with its neighbors. Simple economics dictates that investment dollars will avoid California.

What is the solution?

California has about three times the health-insurance mandates of Idaho, about double the national average. If California were to allow true competition, including out-of-state plans, costs would go down and choice would go up.

Another way to keep health care costs in check without sacrificing quality or raising taxes can be found in consumer-directed health plans. Enrollment in health savings accounts paired with high-deductible health insurance tripled in 2006. Compared with managed care plans, consumer-directed health plans reduce the annual cost per employee by about $1,000 while preserving patient choice. Unfortunately, California is one of only four states that does not allow this freedom of choice.

And that's a shame. Because there are many ways to increase Californians' access to health care without illegally increasing taxes by calling them fees.


TOPICS: Business/Economy; Culture/Society; Editorial; Politics/Elections
KEYWORDS: arnold; arnoldcare; arnoldschwarzenegger; ca; california; callingallilk; coverage; expand; hypocrite; raising; rino; schwarzenegger; taxes; truelies; twirp
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Chuck DeVore, R-Irvine, is a member of the California Assembly.
1 posted on 02/18/2007 9:48:18 AM PST by NormsRevenge
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To: NormsRevenge

I am still confused, Why did California fire Davis and hire Arnold Kennedy?


2 posted on 02/18/2007 9:50:57 AM PST by HuntsvilleTxVeteran (Vote for RINOS and cry by sending a self-abused stomped elephant.)
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To: NormsRevenge

bump


3 posted on 02/18/2007 9:53:56 AM PST by lowbridge ("Of course Americans should vote Democrat" -Jihad Jaara, senior member, Al Aqsa Martyrs Brigade)
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To: HuntsvilleTxVeteran

Ask the Ca GOP powers that be back then , they backed him along with Jay Leno, Hannity and Hewitt for a few.. not to mention Buffett and the Bilderbergs

Politics has become an incestuous affair these days in California, no telling who's in beds with who anymore.

Hope that helps a bit. :-)


4 posted on 02/18/2007 9:55:02 AM PST by NormsRevenge (Semper Fi ......)
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To: NormsRevenge

"When is a "tax" a "fee?"- when you can legally and without much effort wriggle yourself out of paying it. Social Security is a tax [the Amish do not pay it, true, but it took them quite an effort to get to that status]. Toll on a road is a fee, as long as there are secondary, non-toll roads which you could take instead.


5 posted on 02/18/2007 10:03:22 AM PST by GSlob
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To: NormsRevenge

"Not Yours To Give" -- Davy Crockett's Lesson in Government Benevolence
http://www.house.gov/paul/nytg.htm


6 posted on 02/18/2007 10:06:10 AM PST by The Spirit Of Allegiance (Public Employees: Honor Your Oaths! Defend the Constitution from Enemies--Foreign and Domestic!)
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To: NormsRevenge

I have an easy solution to California's budget woes.

Fines instead of jail time.

For example, if you were a middle or upper middle class person, who for the first time had been arrested for DUI, how much money would you pay to NOT go to jail for several months?

$10,000? $20,000? $30,000?

Annually, California has about 130,000 DUI *convictions*! If only 25% of these are both "1st time DUI", and able to pay, California would earn close to a BILLION dollars.

On JUST DUI.

Now think of all the other embarrassing offenses committed by the middle and upper middle classes. Non-violent offenses that they could pay whopping big fines for instead of going to jail.

So not only does California get a huge influx of income, but it also saves a huge amount of money by NOT incarcerating people in expensive jails.

If California chose this system over spending money to put people in jail, it could probably balance its budget with just a dozen crimes turned into fines.


7 posted on 02/18/2007 10:21:49 AM PST by Popocatapetl
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To: Popocatapetl

Bring back debtor's prison!
****

I'm a great believer in luck, and I find the harder I work the more I have of it.
Thomas Jefferson

In matters of style, swim with the current; in matters of principle, stand like a rock.
Thomas Jefferson

It is neither wealth nor splendor, but tranquility and occupation which give happiness.
Thomas Jefferson

Never fear the want of business.
A man who qualifies himself well for his calling, never fails of employment.
Thomas Jefferson

Never spend your money before you have it.
Thomas Jefferson

Never trouble another for what you can do for yourself.
Thomas Jefferson


8 posted on 02/18/2007 10:29:06 AM PST by HuntsvilleTxVeteran (Vote for RINOS and cry by sending a self-abused stomped elephant.)
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To: NormsRevenge; FairOpinion; 68 grunt
But the governor called Angelides' "fee" a "tax," so a "tax" it was. Now that Schwarzenegger is proposing a government health plan that is $5 billion larger than Angelides' proposal, Schwarzenegger has decided to call his three new taxes "fees."

I haven't perused the thread yet. Has FO(FouledOut) and 68Grut seen this yet? Ok, now I'll go look...

9 posted on 02/18/2007 10:31:38 AM PST by SierraWasp (Get the Recall petition papers ready for signing up to Recall Arnold in the Feb. 2008 Primary!!!)
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To: NormsRevenge

Another way to reduce healthcare costs is to make those who employ illegal aliens pay for their healthcare costs. Of course, if the true costs of having these people here were considered and employers forced to pay, they wouldn't be such a bargain anymore.


10 posted on 02/18/2007 10:47:26 AM PST by WFTR (Liberty isn't for cowards)
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To: NormsRevenge
HSA accounts would be cheaper. The government could contribute a matching amount of $2,000 to every Californian to open their own tax free account to which they would be required to invest $100.00 a month. Think of it as a forced savings plan for catastrophic health expenses. That's all most people really need and they shouldn't be forced to buy a health insurance policy they don't want or can't afford. Its certainly more bang for the dollar than Arnold's plan and doesn't require new taxes or a gargantuan new bureaucracy to administer it.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

11 posted on 02/18/2007 10:52:37 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: NormsRevenge


It's like everything else on the left:

It's not a "tax" cause we're not going to call it that. (We prefer "fee".)

It's not a "baby" cause we're not going to call it that. (We prefer "fetal tissue".)

It's not "terrorism" cause we're not going to call it that. (We prefer "freedom fighter".)


12 posted on 02/18/2007 10:58:08 AM PST by Tzimisce (How Would Mohammed Vote? Hillary for President! www.dndorks.com)
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To: goldstategop

In this week's hearing on the proposed plan, Democrats said they were "uncomfortable" with the idea that people would be required to purchase health insurance. Their primary objections was to the "purchase" part of that statement. They were find with their constituents being 'given' health insurance.

From the looks of it, Shelia Kuehl has lined up her buddies and they're going to do everything they can to torpedo the plan as a way to 'get even' for her bill being vetoed last year.

Interesting editorial in Investors Business Daily Friday, pointing out, among other things, that the percentage of uninsured in California is lower now than it was during the Clinton administration. This, despite the huge increase in uninsured illegal aliens during the last ten years. It's here:

http://www.investors.com/editorial/editorialcontent.asp?secid=1501&status=article&id=256435064456051


13 posted on 02/18/2007 11:04:16 AM PST by ArmstedFragg
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To: SierraWasp
... Has FO(FouledOut) and 68Grut seen this yet? ...

I waited until the stupid one pinged me.

14 posted on 02/18/2007 11:08:59 AM PST by 68 grunt (3/1 India, 3rd, 68-69, 0311)
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To: SierraWasp
What did you say? I'm not sure I heard you. Now that Schwarzenegger is proposing a government health plan
that is $5 billion larger than Angelides' proposal...

15 posted on 02/18/2007 11:11:10 AM PST by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: HuntsvilleTxVeteran

Interesting quotes - you know congress bailed TJ out of bankruptcy, right? They bought his library to keep him out of the gutter, now called "The Library of Congress."

He also let the navy rot at the piers, then declared war on the worlds largest naval power.

Interesting guy.


16 posted on 02/18/2007 11:14:53 AM PST by patton (Sanctimony frequently reaps its own reward.)
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To: patton
He also let the navy rot at the piers, then declared war on the worlds largest naval power.

IIRC, only Congress allots funds for maintenaning a navy and only Congress can declare war.

17 posted on 02/18/2007 11:26:46 AM PST by Carry_Okie (Duncan Hunter for President)
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To: NormsRevenge
The last "R" Gov of La. did the same thing. Got rid of utility and food taxes, replaced them with an income tax. Then we got a lot of new "Fees" not taxes "Fees" added to food and utilities.

Good luck Mexifornicans.

18 posted on 02/18/2007 11:48:55 AM PST by rawcatslyentist (This most beautiful system could only proceed from the dominion of an intelligent and powerful Being)
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To: rawcatslyentist

Not Mike Foster -- maybe Treen? There was state income tax in La. before Foster.


19 posted on 02/18/2007 12:29:44 PM PST by scrabblehack
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To: 68 grunt
"Now that Schwarzenegger is proposing a government health plan that is $5 billion larger than Angelides' proposal..."

That should make ya happy.

20 posted on 02/18/2007 1:17:38 PM PST by Mojave
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