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Overshadowing the 'hidden tax'
Health Care Op-Ed
By: John R. Graham
6.1.2007
Sacramento Bee , June 1, 2007
In his "Is hidden tax merely a myth?" column on May 29, Dan Walters convincingly represents the Hoover Institution's conclusion that the so-called "hidden tax" on health care of $1,186 per insured family, upon which Gov. Arnold Schwarzenegger relies as the basis for his expensive health care reforms, is grossly over-inflated. John Cogan and his Hoover colleagues whittle the figure down to almost nothing. However, the big picture is even worse. If one graphic artist chooses a job paying $50,000 without benefits, and another graphic artist chooses one paying $40,000 plus a gold-plated health plan worth $10,000, the tax code forces the uninsured worker to subsidize the insured one. Even the governor's analysis pegs this amount at $8.4 billion statewide, overwhelming the trivial "hidden tax." The governor's well-intentioned plan has identified the wrong culprit for high health care costs. John R. Graham, Sacramento
Director of Health Care Studies, Pacific Research Institute
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