Labor and Business urge legislature to say no to health care taxes

STAFF CONTACT :

Director of Communications
518.465.7511
24
Mar
2009

Contacts:
Mario Cilento, New York State AFL-CIO, 914-261-4356
Bill Stroh, The Business Council of New York State, 518-465-7511

Albany-As the state budget deadline approaches the New York State AFL-CIO and The Business Council of New York State called on the legislature to reject taxes that will increase the cost of health care coverage.

More than $500 million in new taxes on health care are being negotiated by the leaders on top of the $348 million approved earlier in the deficit reduction plan. The most damaging are increasing the HCRA surcharge on services, which is essentially a sales tax on health care from 8.95% to 9.63% and expanding that tax to physician services not currently covered by it.

“These proposed tax increases will make it harder for employers and workers to afford health coverage. They would penalize employers who are doing the right thing by providing health care coverage, while allowing those who fail to provide the coverage to pay nothing. We must make health coverage more affordable and available, these taxes do the opposite,” said Denis Hughes, president New York State AFL-CIO.

“Our members say that the cost of health care coverage is the number one cost of doing business issue in New York State. Placing new taxes that drive up the cost of health care is simply the wrong direction for New York and will lead to more uninsured New Yorkers,” said Kenneth Adams, president & CEO of The Business Council of New York State.

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