Greater Irvine Chamber Opposes Senate Bill 562
Tuesday, May 30, 2017
On May 25, California Senate Bill 562, the Healthy California Act, was passed out of the Senate Appropriations Committee on a party line vote of 5-2. The bill would create a single, statewide insurance plan for everyone — including undocumented residents, seniors on Medicare and people who now get their health coverage through work — without co-pays or deductibles.
The Greater Irvine Chamber of Commerce has joined a coalition of other chambers, business organizations, insurance organizations, and hospitals in opposing this measure because the measure will place the financial burden on businesses, employers and employees. A large payroll tax would penalize responsible California employers and be a deterrent and disincentive to new employers. Additionally, payroll tax increases would likely lead to job loss as existing business and employers would be forced to cut costs to sustain the added new tax burden.
Recent estimates have claimed the program would cost $400 billion annually and would be funded through increases in payroll taxes. To put that price tag in perspective, the entire General Fund budget for the entire state for fiscal year 2016-2017 is $122.5 billion. The bill will now head to the State Assembly for consideration, where it is likely to face a more difficult path.
For more information on this action, and how to become involved, contact Whit Peterson, director of Government Affairs, Greater Irvine Chamber.
Category: Advocacy News