03/18/2008
CONTACT: Bill G. Smith, 608-255-6083 or Jason Brewer, 202-406-4435
NFIB remains opposed to $416 million healthcare tax
MADISON, Wis. -- With some business and industry groups capitulating on a scheme being sold as a plan to leverage more federal money for state healthcare programs, the state's leading small business association reiterated its firm opposition to Gov. Jim Doyle's proposed hospital tax.
"Healthcare costs in Wisconsin are spiraling upward for thousands of small-business owners and their employees," said Bill G. Smith, Wisconsin state director for the National Federation of Independent Business. "Imposing a new tax on hospitals -- that ultimately will be passed on to patients -- will only make healthcare more expensive and less accessible for families all across Wisconsin.
Smith said small business owners are looking for solutions that make access to quality healthcare more affordable, and disputed the notion that the hospital tax will not be passed on to patients.
"Higher costs for hospitals means higher costs passed on to the insurance company -- and higher costs for the insurance company means more expensive healthcare premiums for small business owners, their employees and their families," said Smith. "The fallacy that this tax will not ultimately be passed on to Main Street is just plain disingenuous, and those backing this scheme are trying to sweep that inconvenient truth under the rug."
Proponents have argued the new revenues are needed in order to keep pace with the growing demand for state-run healthcare programs for those who are struggling to obtain coverage. Smith said the problem with healthcare today is that it's too expensive, and that the solution advocated by those backing the healthcare tax would only make matters worse.
"Taxing healthcare is never going to make it less expensive," Smith said. "Taxing healthcare will only make it more expensive, and inhibit the ability of employers and workers to access affordable coverage."
The governor's proposal would also siphon off $125 million in revenue generated from the tax to plug the state's budget deficit. Smith argued that the state should fix its budget problems separately, and not use a tax on healthcare to fix the state's budget woes.
"This new tax should not be used to bailout the budget," Smith said.
Smith urged lawmakers to focus on solutions to making healthcare more affordable, rather than raising taxes on healthcare and driving more and more people out of the market.
"Making healthcare more affordable should be the goal," said Smith. "The hospital tax will take Wisconsin in the opposite direction."
