OKLAHOMA CITY – The State Chamber of Oklahoma today asked the Oklahoma Supreme Court to allow it to file a brief, known as an amicus curiae, in support of the pending lawsuit challenging a $78 million tax voted by the state Legislature in the last week of the session. “We are asking the Supreme Court to allow us to voice the arguments of Oklahoma’s business community against this very costly tax,” said Fred Morgan, president and CEO of The State Chamber.“The legislature and the governor’s office have estimated that this new tax on health care benefits will raise $78 million,” Morgan said. “We estimate the cost to Oklahomans to be much higher when you consider the administrative expenses of trying to comply with this very poorly drafted legislation.”
All of that increase, both the tax and the administrative costs, will be passed on to the businesses, cities, counties, schools and individuals who pay the health insurance premiums.
“This tax is on all paid health care claims for every Oklahoma resident,” Morgan continued. “This means that Oklahomans with an individual policy will be paying the increased tax and costs. Make no mistake about it; this legislation will increase health care premiums.”
The State Chamber agrees with Insurance Commissioner Kim Holland that the legislation is unconstitutional for the following reasons:
- The Oklahoma Constitution states that “No revenue bill shall be passed during the five last days of the session.” The bill containing this provision was passed on Monday, May 24th by the Senate. The legislature adjourned on Friday, May 28th.
- The Constitution also states that a “Revenue Bill” requires either a 75 percent vote in both houses of the legislature or a vote of the people. Neither house passed the bill with a 75 percent vote.
“There is no doubt that the sole purpose of this legislation is to raise revenue,” Morgan said. “They can call it a fee or an ‘access payment,’ but it’s clearly a tax designed to raise revenue. Moreover, this bill is not even designed to raise money to help the Insurance Commissioner run her agency. The tax revenues are to be spent for a totally separate purpose.”
“While The State Chamber supports the need to find a long-term source of funding for Medicaid, this tax is not it,” Morgan said. “We must fight this tax increase with everything we have. The fact that the bill includes self-insured businesses that are not even regulated by the state makes the cost of this legislation even harder to calculate.”
The State Chamber of Oklahoma
Representing more than 1,200 Oklahoma businesses and 400,000 employees, The State Chamber of Oklahoma has been the state’s leading advocate for business since 1926. For more information, visit www.okstatechamber.com.
FOR IMMEDIATE RELEASE
Aug. 10, 2010
Contact: Chad Previch
cprevich@saxumpr.com
405.608.0445 or 405.487.9249
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