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Edited on Wed Sep-06-06 11:02 PM by Maat
recognize how badly it is needed, and wrote an email, I'm now having second thoughts.
Let's say that there's a couple that makes $150,000 dollars together in California, and that they are both independent contractors. They already have to pay federal and state taxes, in addition to both sides of social security (they each pay 16%). They already are in the 50% tax bracket.
They have to put food on the table and pay the mortgage, which in SoCal is at least $3,000 a month just for the mortgage.
This bill would require them to pay an additional $17,250 (11.5%) off the top, and that might put them out of business! A private health insurance plan for a family at Blue Cross costs $7,200 per year (we have such a plan, and it is fairly comprehensive, and provides for extensive multi-million dollar coverage in the event of a medical emergency). The difference is $10,050/year. That would buy quite a bit of insurance!!
So, this bill is going to have a HUGELY negative impact upon small businesses and independent contractors, and they already are dealing with so much.
I have emailed Sheila Kuehl's office, and verified that the independent contractors would have to pay the suggested 11.5% (8% payroll tax and 3.5% as an individual), if that is what the Commission established recommended. It is likely that it will be at least that high due to an independent organization's recommendation.
I emailed her that she needed to provide for either a cap or an exemption to small businesses and independent contractors, before I could continue backing the bill.
We need to focus on huge companies that can afford this; crushing small businesses for this will get us nowhere.
So, right now, I'm not blaming Phil for backing universal health care - just not this bill.
So, that's where I'm at now. I'm not trying to get my fellow progressives mad at me. I'm trying to figure out how I can support my family, keep my income, secure decent healthcare for all, and yet have enough to fund my causes.
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