Bay City, Michigan 48706
Front Page 03/28/2024 14:00 About us
www.mybaycity.com October 6, 2003
(Prior Story)   Government ArTicle 306   (Next Story)


Sen. James Barcia, Sen. Nancy Cassis and Sen. Michelle McManus confer after Senate Finance Committee hearing in Bay City.

State Senate Finance Committee Hearing Draws Support for End to Health Tax

Sen. Barcia Host as Bipartisan, Business-Labor Backing Grows

October 6, 2003       Leave a Comment
By: Dave Rogers

Printer Friendly Story View

Business and labor, Democrats and Republicans have joined together to support a five bill package of legislation to phase out all state taxes on health insurance paid by employers for employees.

A small parade of witnesses testifying in favor ofthe package of bills before the Michigan Senate's Finance Committee hearing Oct. 6 at the Bay City Holiday Inn included John Peil, business manager of the International Brotherhood of Electrical Workers, John P. O'Brien, president of Emcore, Inc., and Michael Seward, president, Bay Area Chamber of Commerce, representing 850 small business owners.

Host of the hearing, Sen. James Barcia, D-Bay City, also is supporting the legislation, authored by Sen. Nancy Cassis, Novi Republican, chairperson of the Senate Finance Committee, and Sen. Michelle A. McManus, R-Traverse City, committee member, both of whom were on hand to conduct the hearing.

O'Brien testified that health care costs are higher than the payments on his 22,000 square foot building in Valley Center Technology Park, contributing to a decrease in his employees from 28 to 10.

Sen. Cassis said surveys by the Michigan Manufacturers Association and the Small Business Association show that health care is the main concern and top priority of most employers.

"This health care insurance crisis is growing and worsening," said Sen. Barcia. "It is forcing the state to redirect more resources and reduce other services. It makes more sense to make it easier for the private sector to provide health care services."

Health insurance premiums have risen up to 20 percent a year, forcing employers to either cut employees' insurance or shift costs to employees, Barcia noted.

The Cassis Care and Competitiveness Package of five bills has three principal objectives: 1) create Michigan jobs and reduce the need for layoffs; 2) Provide and maintain health benefits for Michigan workers; and 3) Sharpen Michigan's competitive edge and grow the state's economy.

The bills would eliminate the Health Care Addback from the Single Business Tax base over a five year period. "Employers will stop being penalized by higher taxes for providing health care benefits to employees," said Sen. Cassis.

Passage of the bills, and approval by Gov. Jennifer Granholm, is estimated to save $15.8 million in the first year, boosting Michigan's economic recovery.

Removing the tax penalty will allow many small businesses to offer health care benefits, the senators said. There are 1.5 million uninsured people in Michigan and last year 111,000 lost health insurance because employers couldn't afford it, said Sen. Barcia. He said hospitals still have to treat uninsured persons, thus shifting the cost of uncompensated coverage to insured people through hikes in premiums.

The state will become more competitive by joining 48 other states that do not impose such a tax, according to the sponsors. Only Michigan and Washington now tax employers on the health care they offer employees.

Supporting groups include the Michigan Chamber of Commerce, GM and Ford, and a host of business associations and companies, said Sen. Cassis.



Printer Friendly Story View
Prior Article

February 10, 2020
by: Rachel Reh
Family Winter Fun Fest is BACC Hot Spot for 2/10/2020
Next Article

February 2, 2020
by: Kathy Rupert-Mathews
MOVIE REVIEW: "Just Mercy" ... You Will Shed Tears, or at Least You Should
Agree? or Disagree?


Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

More from Dave Rogers

Send This Story to a Friend!       Letter to the editor       Link to this Story
Printer-Friendly Story View


--- Advertisments ---
     


0200 Nd: 03-24-2024 d 4 cpr 0






12/31/2020 P3v3-0200-Ad.cfm

SPONSORED LINKS



12/31/2020 drop ads P3v3-0200-Ad.cfm


Designed at OJ Advertising, Inc. (V3) (v3) Software by Mid-Michigan Computer Consultants
Bay City, Michigan USA
All Photographs and Content Copyright © 1998 - 2024 by OJA/MMCC. They may be used by permission only.
P3V3-0200 (1) 0   ID:Default   UserID:Default   Type:reader   R:x   PubID:mbC   NewspaperID:noPaperID
  pid:1560   pd:11-18-2012   nd:2024-03-24   ax:2024-03-28   Site:5   ArticleID:306   MaxA: 999999   MaxAA: 999999
claudebot