Health reform initiative is filed

Analysis
In his 2007 Los Angeles Times article, "Health reform initiative is filed", Michael Rothfeld explains how Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nuñez plan to finance their $14.4 billion dollar healthcare expansion to most Californians. Filed on Friday December 28, 2007, the two state leaders said that they would also almost double the states sales tax on cigarettes from $.87 cents to a whopping $1.75. Schwarzenegger and Nuñez say that this plan, if passed by the Senate, will provide medical coverage starting in 2010 to nearly 3.6 million people (800,000 of which are children who dont have insurance now). The proposed cigarette tax will be instituted in mid- 2009 and will also help pay for this healthcare reform.



There are many opposers of the plan like that of the Virginia-based Philip Morris USA spokesmen Bill Phelps who says "In expanding programs, we don't think it makes sense to fund it with a declining revenue source. Cigarette sales have been declining for many years." Although there are many opposers of the plan, the good out weighs the bad. Many followers and supporters of the plan like Service Employees International Union (SEIU) have decided to take leading roles in collecting signatures for the initaiative so that it will get a chance to be on the Nov. 2008 ballot. Committees have also been established to help fund this program.



As Rothfeld said," One complication, politically, is that the voters are being asked to approve new taxes that would do nothing to resolve the state's projected $14-billion budget deficit for the coming fiscal year." In other words, the voters are being asked to pay more taxes that will not help the California gov't. reach this $14.4billion dollar goal. In addition, "some observers have questioned the viability of the state proposal in light of a U.S. District Court ruling Wednesday that said a similar plan in San Francisco conflicted with federal law."



Along with the tobacco tax, the state plans include a fee on employers ranging from 1% to 6.5 % on their payroll depending on the siuze of their payroll. As some officials have said, "The money would go into a new California Health Care Trust Fund to help those who cannot afford it buy insurance." Although the state will have to cut of healthcare for children funded by county or city groups, the initiative also stipulates that the state take out a $25 million dollar loan that will bridge the gap.
Tone: Informative/ Calm
Question: If this plan will have many bad after-effects, do you think it should even go to the senate.