|
For Immediate Release
April 24, 2007
Back Welcoming Remarks
State Senator Don White
Chairman, Senate Banking and Insurance Committee
Hearing on the Governor's Fair Share Tax/Universal Health
Care Proposal
Good Morning, I am Senator Don White,
Chairman of the Senate Banking and Insurance Committee, and
welcome to this joint public hearing on the Governor's
proposed "Fair Share Tax" and universal health care plan.
I would especially like to welcome Rosemarie
Greco, Director of the Governor's Office of Health Care
Reform, representatives from Retail Industry Leaders
Association, and the business leaders who will participate
in a panel discussion later this morning.
I appreciate all of you taking the time out
of your schedules to be here today for what I believe will
be an informative session.
When Governor Rendell proposed the Fair
Share Tax, it was billed as a 3 percent tax on an employers
payroll that does not offer employees 'acceptable' health
care coverage. A few weeks later, the legislature learned
the plan actually calls for the tax to be increased by
approximately 16 percent after the third year and all
employers will be assed the tax and be burdened with the
need to seek a refund if their coverage is deemed
'adequate'.
Today's hearing is not intended to be a
review of the pros and cons of the proposed Prescription for
Pennsylvania in its entirety. Rather, we are here to discuss
the legality and practicality of the manner in which the
Governor proposes to collect and redistribute the revenues
gained from his payroll tax.
Any time government takes additional money
from employers one of two things tends to happen – and both
are bad. Either prices of services go up or jobs are lost. A
three-percent tax may not sound like a lot, but it can be
the deciding factor for a small business to choose to
relocate or shut down entirely.
Given the extensive hearings held by various
committees on the Prescription for Pennsylvania, it is time
for the legislature to look beyond the surface and study the
specifics of the Governor's proposal. I am confident the
information we receive today will be helpful in determining
the viability of the Prescription for Pennsylvania's
cornerstone – the implementation of a new payroll tax on
Pennsylvania employers.
Thank you and I would turn to my colleague,
Pat Browne, Chairman of the Finance Committee for his
opening remarks.
| 