UPDATE: We’ve received some questions about whether this enormous tax hike is percentage points (e.g., going from 1% to 7%) or if it’s just a percentage tax hike (e.g., going from 1% to 1.06%). The horrific news is that it would be a percentage points tax hike, so an additional percentage amount on the percent paid. Here’s an excerpt from the bill’s language:
(a) A SIX PERCENT PAYROLL PREMIUM FROM EMPLOYERS FOR THE PURPOSE OF SPONSORING THE COOPERATIVE HEALTH PLAN;
(b) A THREE PERCENT PAYROLL PREMIUM FROM EMPLOYEES, OF WHICH THE EMPLOYER MAY PAY ALL OR PART OF THE EMPLOYEE PORTION OF THE PREMIUM;
(c) A SIX PERCENT EMPLOYER’S PREMIUM AND A THREE PERCENT EMPLOYEE’S PREMIUM FROM SELF-EMPLOYED INDIVIDUALS;
(d) A NINE PERCENT PREMIUM ON ALL INCOME THAT DOES NOT COME FROM COLORADO PAYROLL OR COLORADO SELF-EMPLOYMENT, EXCLUDING PENSION, SOCIAL SECURITY, CHILD SUPPORT, AND UNEMPLOYMENT INSURANCE INCOME
In practical terms, this is what the tax would look like, not including taxation on investments, on someone who makes $50,000 per year:
An employee would pay an additional $1,500 in taxes per year and their employer would pay an additional $3,000. A self-employed person who makes $50,000 per year would pay an additional $4,500 in taxes (9%).
This is amazingly problematic. We’ll report more on this in the days to come.
No, this is not an April Fools’ Day joke. Unfortunately, yet another new tax for Coloradans has been proposed by Senate Democrats to pay for a state-run insurance program. Sen. Irene Aguilar (D-Denver) has proposed a hefty tax on businesses as a constitutional amendment to put into place the first publicly-run universal health system in America, also known as SCR13-002. Here is how the tax increases would break down:
- Six percent payroll tax on employers
- Three percent payroll tax on workers
- Nine percent income tax on everyone
That translates to a nearly 18% tax increase on small business owners. Initially, when she proposed it last December, the plan called for a 6% increase in payroll taxes and 6% increase in income tax, meaning her newest proposal will cost 50% more than originally projected. That’s before the proposal has even left the gate.
For this massive increase in payments to the state, Coloradans would get universal health care similar to what’s being developed in the Colorado Health Benefit Exchange. All health care benefits would flow through a Colorado Health Care Cooperative board, which would seek exemption from federal health care laws. No money would change hands between insurance providers and subscribers – all money would flow through a state intermediary.
Aguilar is taking an unusual approach to passing her health care bill – she plans to place the proposal on the ballot to allow all Coloradans to vote for (or against) it. To get the proposal on the ballot, Aguilar would need the support of four Senate Republicans and seven House Republicans (i.e., two-thirds of the Legislature).
While Aguilar isn’t intending her legislation to be an April Fools joke, government-run healthcare is so unpopular, Republican direct mail consultants will be laughing all the way to the bank on this vote.
Not true, Lori. You will choose what 'medical home' you go to for primary care. The medical home is intended to help customize/personalize your medical needs between yourself and your doctor – it is not intended to take away any choices regarding what providers you use. Watch the documentary 'U.S. Health Care: The Good News'. it focuses on what is working in health care – and what is happening in Grand Junction, CO is highlighted in the film.
Shawn, you are such a smart liberal, you should be able to answer a couple simple questions easily. What health care provider in the US turns down the most medical requests of any of them? Also, which healthcare provider just recently banned the use a two of the most effective breast cancer treatments? Judging from your profile picture, you should know that one easily. Although denial seems to be a pretty solid part of your repertoire.
This has been in the works for a long time and she finally brings it to fruition on the floor. Senator Aguilar completes with President Obamacare in taking down the health care industry. All of those who want free health care or buy the line that Cooperatives will reduce the price of health care dream on. The middle class and small business are sick of supporting the whole damn country.
Yes, Kelly, it's a bad thing. You must belong to the cooperative where you will be kept in a "Medical Home" Say goodbye to choice. You think those nice things you speak of are going to happen? Dream on.
Universal health care? No. Universal little medical services cards? Maybe.
Though related, health and medical services are not the same thing. Indeed, those who use the most medical services may be the most unhealthy.
The trick is not to get the card. The trick is to get someone to provide medical services in exchange for the promises made when tendering the card.
I can give you a medical card. You'll be struck by lightning before any competent medical professional will provide diagnosis or treatment on my assurances of payment.
The busybody Left is busy just now ignoring that problem.
Geoia L Reetz – I chose to become an American citizen after I moved from Canada. I love this country, and I chose to come here. I did not choose this health care system, and I'd like it to change. So, if you don't like that, perhaps you should move to North Korea or Iran.
Ron Bland – Well, maybe it's because we know that other health care systems are better. You may be happy with overpriced insurance plans, and you may love to pay a middleman to refuse your claims, but most of us don't.
I talked to the Canadians at my job. Also, they said the health is basically like a crap shoot some cities good some cities bad, not very consistant. Also, Australia has the socialize medicine too.
Economist Gerald Friedman has conducted an economic impact study on the Cooperative and finds that there would be enough efficiency savings in the Cooperative to lower average Colorado Healthcare Expenditures by $888 per capita in 2016, and the savings would rise to $2,523 per capita in 2024.
Does anybody here know what percentage of their income they ALREADY pay in premiums for their insurance policies (either directly or through an employer)? It's a simple calculation (premium expense divided by income) and if you do the math I'm sure you are already paying MORE than the 3% and the 6% (employee, employer premiums, respectively) being proposed in this bill. Add in the price of co-pays and it goes even higher. The difference is you will be paying into the cooperative – and not to the insurance companies who direct it immediately into the pockets of CEOs. The current system allows each of us to get ripped off every day by insurance and Rx drug companies (and others) every single day. With the cooperative we would collectively, through the cooperative, lower Rx drug costs for every single Coloradan – and the state -by negotiating Rx prices. And that's a 'bad' thing?
People against helping other people are usually the ones with health insurance who haven't gone into a $100,000 of debt because of put current healthcare system that takes everything it can from everyone . Where is your outrage about healthcare providers charging 500% market on everything ?
Yeah, socialized medicine is great. Ask Liam Neissen who's wife died after hitting a tree skiing in Canada because the, oh-so efficient Marxists system would not send a helicopter to get her and take her to a hospital so she lay for hours in an ambulance. Then they finally carted her off to one of the very few MRI units in the Country (they have fewer in the whole country than the average large city in the US). They eventually took her to a hospital in the US. She had what wold have been a relatively easy fix here but it was a death sentence in Canada and it was too late by the time they got them to a real healthcare system. Just one example. Thousands a year die there and in every other socialized medicine locale waiting for relatively routine procedures. Facts are stubborn things.
Shawn, you lose your freedom in schemes like Aguilar is proposing and eventually, you pray you don't get too sick.
Americans have lower cancer mortality rates than Canadians. Breast cancer mortality is 9 percent higher, prostate cancer is 184 percent higher and colon cancer mortality among men is about 10 percent higher than in the United States.
Lower income Americans are in better health than comparable Canadians. Twice as many American seniors with below-median incomes self-report "excellent" health compared to Canadian seniors (11.7 percent versus 5.8 percent). Conversely, white Canadian young adults with below-median incomes are 20 percent more likely than lower income Americans to describe their health as "fair or poor."
http://www.ncpa.org/pub/BA649
They should go sit in traffic on I-70 at mm 148 and see their tax dollars at work what a joke 3 hours to go 5 miles and they want more tax dollars
What is it with people who continually wave a flag of a different country and think they have a right to tell US citizens how they should be governed and what laws they need to follow. There is a reason we live in the USA and it is not because we want it to be like any other country so anyone who wants to change it is more than welcome to leave and go where they feel things are better.
Michelle – Bye!
Peter – You're wrong. I lived in Canada, so I know how well the system works.
My entire family is leaving CO. That state has gone to ****
Not aguilars and not obamas…period. I will not participate.
Please note that this is MANDATORY. If you want private health insurance, you still pay for Aguilar's socialized system. NINE percent of your income.
Shawn, you have no clue what you are talking about. Bob stated the facts of the Canadian medical system. If you are dying and need immediate treatment, you go to the US. You will die in Canada. My dad lives in BC, I had 2 friends who this exact thing happened to. One died, the other had money and was able to go to Palm Springs for treatment.
Small business is the foundation of America. The number one employer, the number one taxpayer and the number 1 producer. Put us out of business with over taxation and you will fill the welfare, disability rolls and have no one to pay the taxes needed to support them.
Canada is running out of money for their system. Almost all Canadians have supplemental private insurance. And controlling costs not only restricts care greatly in their trauma centers, but also limits malpractice actions and the docs are insured by the gov't system. Dems NEVER want tort reforms- they want to tax everybody but they won't EVER take cost controls into consideration. That is why ObamaCare is such a huge disaster. This is just another wealth reallocation scheme that hurts the job provider. Surprise, huh?
idiots don't know when to stop…..
Then move to Canada!
Which is why they come to the IS for immediate treatment!
This is an excellent idea, and I hope it will become reality some day. What she is describing is what Canadians have right now – one of the most efficient and cost effective health care systems in the world which cuts out the middle man and tightly controls costs.
I call it the, "Throw it at the wall, see if it sticks method…" It doesn't work for pasta either Irene…
Another attempt by the Dimwits to pay for their feel good programs on the backs of the people and small business. These idiots don't care what they are doing to the people or to the economy – if it feels good – do it!
This is unbelievably STUPID. Business owners are struggling out here – this would effectively kill it the rest of the way. No businesses, no money, no people employed = STUPID.
….uh…..ummmm….NO!