Posted on 10/18/2004 1:22:02 PM PDT by calif_reaganite
Albert Einstein once defined insanity as doing the same thing over and over again, each time hoping for a different result. Apparently accepting that definition as a way of doing business, our state Legislature has excelled at repeating the same failed missteps, oblivious to the damage inflicted on California, whose well being it is charged to protect.
In 2003, faced with an enormous budget deficit and an unprecedented flight of businesses, capital and people from the Golden State, the Democratic majority in Sacramento performed the legislative equivalent of dousing a fire with gasoline and passed Senate Bill 2, imposing a colossal new healthcare mandate on California’s employers.
Despite the fact that, according to the California Chamber of Commerce, one-fifth of California’s businesses have plans to relocate out of state, Governor Gray Davis signed SB2 into law two days before being shown the door by the overwhelming outrage of the electorate. SB2 has since been successfully placed on the ballot through the referendum process as Proposition 72.
Proposition 72 is a veritable case study in false promises and big government ineptitude and, consequently, a grave danger to our fledgling economic recovery.
Its passage would force every California business employing more than 20 workers to provide full health insurance to each of its employees or pay a new tax to the government in lieu. An in-depth study conducted by the DC-based Employment Policies Institute concluded that Proposition 72 would cost California employers over $12.5 billion a year.
Instead of resulting in an improvement of the general level of coverage, as the measure’s proponents claim, the massive cost of this ill-thought exercise in abusive regulation will undeniably hurt those whom Proposition 72 intends to help the most.
Consider a minimum-wage employee with minimal health insurance coverage. Since his salary cannot be cut any further by law, terminating him would be the only way for a business to cope with the costs of this mandate. As a direct result of Proposition 72, this employee would not only fail to see any improvement in his health coverage, he would lose his job and the minimal coverage he had previously enjoyed.
Likewise, a business with 25 employees would be faced with a choice of shouldering the unsustainable burden of Proposition 72 and facing bankruptcy or laying off 6 of its employees to become exempt. It doesn’t take a CEO to realize the route this hypothetical business will take.
It is also not a stretch by any means to suggest that many businesses will follow the lead of those that have already left the state to find greener pastures elsewhere. After all, to the West, Nevada has no income tax; to the North, Oregon has no sales tax, and to the South, Arizona offers significant incentives to encourage investment and relocation.
In fact, as a direct result of Proposition 72, relocation and downsizing will cause California to lose between 67,000 and 150,000 jobs according to EPI’s study.
Private enterprise, a long-standing target for revenue extraction of all sorts by the state, would not be the only victim of Proposition 72. Its passage, according to the non-partisan Legislative Analyst, would blow yet another several hundred million dollar hole in the state budget as incomes and, consequently, tax receipts shrink.
The main argument driving the push for Proposition 72 is that it will provide coverage of the 6.4 million uninsured in California. It is a glaring falsehood and a textbook example of the ineptness of big government regulation, as Proposition 72 at best will cover only 1.9 million, or 30% of the uninsured, according to the EPI. The average per-person cost comes out to over $6,500 a year, while the average premium in California stands at just over $3,100.
So, there you have it – the best that this pinnacle of governmental intrusion can do is insure less than one-third of the uninsured at twice the real cost, all the while chasing jobs out of state.
History tells us of a Greek general named Pyrrhus, who faced a mighty Roman army over two millennia ago. Pyrrhus managed to defeat the Romans in a long and bloody battle, but in the process lost almost all of his men. To a soldier offering his congratulations on the victory, Pyrrhus famously remarked, “Another such victory and we are all ruined.”
It is time for California to heed his words, for the passage of Proposition 72 would be yet another Pyrrhic victory for the Left, inflicted on California with catastrophic consequences. We stand at a crossroads: we now have a chance to finally turn the corner and forever discard this last vestige of the failed policies of the past. It’s about time we did.
IGOR BIRMAN served as a California delegation member and media representative to the 2004 Republican National Convention. He is currently pursuing a Juris Doctorate at the Emory University Law School.
I'm waiting for the Proposition that makes the minimum wage $100 per hour. Ought to be fun.
I have heard (can't remember where) that this prop is leading in the polls. I predict that we'll be seeing more businesses with 19 employees and holding, and others leaving the state.
I can't imagine Arnold will sit still for this - business men in CA are becoming scarce enough and there's only so many government offices to run for.
Meanwhile, the state's being overrun by illegals, anti-gun laws are everywhere...disarming only the law-abiding, and the California GOP won't offer us anything better than Democrat Lite.
Small wonder Barbara Boxer and Dianne Feinstein keep getting re-elected. It's the Evil Party vs. the Stupid Party out here.
How I wish we could divide the state into East California and West California. Give West Cali from the beach to about 50 miles inland and East Cali can have the rest. Talk about a red/blue divide.
Prop 72 has not been thought out very well, and would be damaging to California, so of course, it will pass.
Best Regards
Sergio
They will leave the state and that might not be a bad thing. Let the rest of the country see what happens in a Mafia(unions)- controlled state.
Arnold aims to run for POTUS.
Love your tag line. A clearer definition of the left would be hard to come by.
Best regards
Sergio
If it passes, I don't think there is much Arnold can do about it. It's not like it was passed by the legislature and he can veto it - a ballot proposition is another matter entirely. He could push to have another proposition placed on the ballot in the future to repeal this, but I don't know what else he could do.
Remember, 10 people employed at $100 per hour is better than 100 people employed at $10 per hour...at least in government and union think.
I'm proud to say I've already voted against this amendment.
Actually it was Nietzsche who first said that.
There was a thread here recently based on Tom McClintock's opinion of all the state ballot measures. I trust Tom's opinion, and in case you do too - here is what he recommended:
1A - NO
59 - YES
60 - YES
60A - NO
61 - NO
62 - NO
63 - NO
64 - YES
65 - YES
66 - NO
67 - NO
68 - NO
69 - YES
70 - YES
71 - NO
72 - NO
Okay you people in CA - write that down or print it out and mark your sample ballot. Arnold is also saying NO on 68.
I'll be voting a big, fat "NO" on prop 72.
Amen! But don't say this loud enough for Arnie's army(With apologies to Arnold Palmer for the signature theft) to hear you.
Are you aware that the great Republican Senator Orin Hatch, from Colorado, has introduced a bill to amend the constitution, that would allow citizens who have been naturalized for 20 years to run for President? RINO's you got to love em…
I think Arnoldis saying no on 70 too isn't he?
72 is an egregious bill, if I were a small business owner I would have to fire half my employees. How dare the people think that they have the right to mandate that someone else pay...........
A minor mistake in the article. Nevada is to the East of California. To the West of California is the Pacific Ocean.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.