WISCONSIN LEGISLATIVE UPDATES

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October 17, 2007

Senate Democrat Health Care Plan Includes Tax on Success

By State Senator Scott Fitzgerald

The Senate Democrats $15.2 billion government-run health care plan would punish Wisconsin workers every time they received a pay raise or a promotion by forcing them to pay more for the same health care coverage.

This “Success Tax” is yet another reason why Democrats should drop their plan from the budget and allow it to have a full review as separate legislation. The Senate Democrats evidently aren’t content with raising taxes on gasoline, buying a home, selling a home, owning a home, down-loading music, getting sick or living in a nursing home. Now they want to make sure that if you succeed at work, they’ll get a piece of the action. Success should be rewarded and encouraged, not punished and taxed.

The Senate Democrat health care plan would require workers to pay four percent of their pay and employers to pay up to twelve percent of each employee’s wages to a government-run health care program. This Madison-run plan would replace Wisconsin’s current system, which was recently rated as best system in the country.

Under the Senate Democrat plan, a worker receiving a pay raise or a promotion would be required to pay more to the government for their health care, and their employer would have to pay more to the government for that employee’s health care – without the worker gaining any additional benefits or coverage.

A Success Tax will hurt Wisconsin’s economy and result in fewer new jobs and fewer good-paying jobs. Wisconsin’s economy needs leadership to create a positive environment for job growth and incentives for companies to add more good-paying jobs in our state. Punishing workers who succeed is a terrible policy that will hurt our economy and cost Wisconsin workers jobs.