CRA Proposes 1 Cent Sales Tax to Fund Health Care Reform
FOR IMMEDIATE RELEASE
August 27, 2007
Sacramento, Calif. — The California Restaurant Association (CRA), the leading advocate for California’s restaurant industry, announced support for a ballot initiative to create a 1 cent sales tax to fund comprehensive health care reform. Over $5 billion in new revenue will be generated annually and will provide a stable source of funding to implement the principles that Governor Schwarzenegger and other stakeholders have endorsed.
“There have been many discussions among employers, labor, health insurers and the medical community about the benefits of an initiative,” said Jot Condie, President and CEO of the CRA, which represents more than 22,000 members throughout California. “Unfortunately, the current legislative process is heading toward a political “deal” that will reduce coverage for those currently insured, make health care even less affordable and harm small businesses and their employees. A payroll tax as proposed in AB 8 will not provide sufficient revenue to finance a new health care program and will be challenged in court—we need to avoid those setbacks and create a sustainable program that will help not hurt.”
“Although the sales tax will have a significant impact on our industry, we believe it will be applied fairly and is the only means to collect funds from those who seek to avoid state taxes,” said Condie.
Small businesses, especially those in the restaurant industry, collect a substantial amount of the state’s sales tax revenue.
The initiative will not suffer from any of the flaws associated with AB 8 and will not create job loss and business failure. The sales tax alone will not solve the systemic problems in our health care system—it must also be coupled with measurable reforms that will reduce health care costs.
“The problem for individuals and small business is not that they do not want to purchase health coverage, it is that coverage is not affordable and the costs are rising each year,” continued Condie.
The CRA will work with all stakeholders—business, labor, health care providers, insurers and other Californians—to create a health care program that embraces the Governor’s core principles of reform, but will not force businesses to lay off workers or shut their doors. The CRA will be working very hard to bring the parties together to craft a real solution that will improve the health care delivery system.
