Oregon Watchdog: Democrats protect unions, stick family businesses with health care costs

Senate Republican Office
Oregon State Capitol

FOR IMMEDIATE RELEASE: April 16, 2009
CONTACT: Michael Gay, (503) 986-1955, (503) 781-8559

Democrats protect self-insured corporations and unions,
stick small, family owned businesses with cost of health care reform

Salem, OR ~n As Oregon wrestles with record unemployment, Governor Kulongoski (D) and Legislative
Democrats are pushing for a health care premium tax that protects labor unions and mega-businesses at the expense of individual payers and small businesses, the backbone of Oregon'is economy.

`iWe share the goal of increasing access to health care for all Oregonians,^i said Senator Ted Ferrioli (R JohnDay). `iBut taxing small businesses, the heartbeat of our economy, in the middle of a record setting recession is just foolish. This proposal is a political payoff to special interests. Protecting them while small businesses cut health care benefits and lay off workers is just wrong, and I oppose it.^i

The proposed 1.5% tax on health care premiums is not a long-term, workable solution. The premium
tax unfairly targets small businesses while exempting self-insured entities such as large companies and labor trusts. The tax would extract $169 million from individual payers and family businesses. The State of Oregon, the largest purchaser of health care coverage in Oregon would also be exempt from paying the tax.

`iIf we are going to find a solution, it should be a solution to which everyone contributes, not just small businesses and individual payers,^i said Senator Jeff Kruse (R-Roseburg). `iState government, big businesses and labor unions should contribute just as much as the ma and pa grocery down the street.^i

Oregon'is unemployment rate climbed to 12.1% on Monday, the highest level since 1947. More than
260,000 Oregonians can not find a job, much less afford healthcare.
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