8.28.2007

| Gov. Schwarzenegger Promises to Veto Health Care Tax

California Governor Arnold Schwarzenegger has publicly stated that he will veto legislation to require business owners to use a percentage of their payroll to pay for employee health care.

The legislation (AB 8) proposed by Assembly Speaker Fabian Nunez (D-Los Angeles) would require employers in the state to earmark at least the equivalent of 7.5% of their payroll for their employees' heath care.

National research suggests that the 7.5% payroll tax would have a significant impact on California's small businesses. Some projections estimate a loss of 249,000 jobs within the first five years of enactment.

For his part, Gov. Schwarzenegger has proposed a competing plan to deal with the state's health care concerns. Under the governor's plan, employers would have the option of either providing their workers health insurance, or paying into a state fund that would offer it to uninsured workers.

To pay for his program, the governor proposes a 4% "provider tax" on hospital revenues, 2% on doctor revenues, and 4% on employers with at least 10 workers if they do not provide health insurance.

For more information, please contact Sam Leyvas at 800.468.2274 x118.
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www.probeauty.org/advocacy

posted: sam leyvas
professional beauty association