December 18, 2003
Report: New York's hidden tax on health care adds to employers' burden of health-insurance costs
The steadily increasing costs of health insurance, a burden of growing concern to employers, is driven to a significant extent by Albany's hidden taxes on health care, according to the sixth briefing paper in The Public Policy Institute's Tax Watch '04 series.
The new paper-"New York State's Tax on Health Care: A Huge - and Hidden - Burden on Business"-was posted Dec. 18 at www.ppinys.org/twatch04.htm.
Employers and individuals will pay New York State an estimated $1.4 billion in taxes on health insurance this year, the report noted. These taxes on health insurance are New York's second-biggest state tax on employers, behind only the corporate franchise tax, the report noted.
Since New York spends these funds "off-budget," taxpayers have now way of learning what is done with the money, the report added.
The Public Policy Institute, The Business Council's research affiliate, launched the Tax Watch '04 series in November to document the effect of taxes on New York's economy, and the importance of restraining government spending as an essential first step in reducing New Yorkers' tax burden.