Minor Thoughts from me to you

Midwestern Socialism

Employer provided healthcare is obviously a good thing. It's so obvious that a local, Madison grass roots group is pushing the city to mandate health insurance for all local employers:

A grass-roots group of Madison-area residents wants the city to require employers to provide health insurance through a mandated fee. The group, Wisconsin Health Care for All, has proposed a universal health insurance plan called "Provide or Pay." It would force employers to make insurance available to all workers or contribute roughly 5 percent to 10 percent of payroll into a community health plan.

Thankfully, the name of this plan is perfectly descriptive. It is a threat to all local businesses: follow our demands or else. While their aim may be laudable, providing healthcare for employees of Madison-based businesses, their methods are deplorable. Their plan will immediately increase the expenses of local businesses by 5 to 10 percent. Increased expenses have to be met somehow. Local business will be forced to increase prices by an equivalent amount or will be forced to lay off employees. Neither outcome will be beneficial for the poor in Madison.

But backers of the insurance proposal call it pro-business, saying it would give companies an affordable way to provide insurance for all workers. "We're trying to create a standard that would make Madison a mecca for business," said Ann Fleischli, a leader of the group.

I'm thankful that we have these enlightened leaders to provide solid advice to Madison's businesses. While most business owners are struggling to balance revenue and expenses, these citizens have discovered the perfect way to provide affordable health insurance. Fortunately, they are willing to share their expertise for free. Who knew? It turns out that increasing expenses by 5-10 percent is not only a good business idea, but is also all that's needed to turn Madison into a mecca for business. And here I always thought that lower taxes was the only ingredient needed to make any area a mecca for business.

"The city doesn't have the authority to impose a payroll tax," [Michael May, Madison city attorney] said.

Fleischli, also an attorney, maintains that municipal law would allow the plan. "It isn't a payroll tax," she said. "It's a fee that's indexed to the payroll."

How's that again? Isn't that what an income tax essentially is: a fee indexed to one's income? I really think this is the most incredible statement in the entire article. Fee? Tax? What's the difference? If the government requires payment and the payment is indexed to some other variable, I'd say that's a tax -- no matter what name the government may choose to put on it. Wisconsin Health Care for All is proposing a new city-mandated payroll tax. It is anti-business, illegal, and potentially damaging to the city's economy.

Bright ideas like these are why Madison is described as "70 square miles, surrounded by reality". It would be nice if we could find some way to inject "Wisconsin Health Care for All" with a concentrated dose of reality. Until then, I'll oppose this plan unequivocally.

This entry was tagged. Healthcare Policy