Brooklyn's Progress
February 2004

Two powerful health-care spending groups have proposed a tax on businesses of up to $3,000 per employee and $1 to $2 billion in new taxpayer-funded public debt to send more money to hospitals and increase state spending on Medicaid and other government health insurance programs.

The plan, which was described in a Jan. 13 New York Times story, is being advanced by the hospital workers' union, 1199/SEIU, and the Greater New York Hospital Association. The proposal would tax employers that do not currently provide employee health insurance benefits as much as $3,000 per employee. The report said the plan also calls for the sale of $1 to $2 billion in state bonds to provide new aid to the state's hospital sector-even though New York's per-capita public debt is already the nation's second-highest.

“Heal New York” is a disaster for the business community and does nothing to address the rising costs of health care,” said Kenneth Adams, President of the Brooklyn Chamber of Commerce.  “The proposal imposes devasting fines on business owners for not providing health insurance as if, with today’s sky-rocketing rates – they could afford it.  Instead of these new taxes that will punish businesses and lay off workers state-wide, we need new strategies to lower costs, and increase participation in employer driven plans.”