• Home
• About Jean +
  • On The Job
  • On The Issues
  • Biography
  • Endorsements
• Issues +
  • Education
  • Family Values
  • Health Care
  • Security
  • Economics
  • Rural
• Support Jean +
  • Volunteer
  • Contribute
  • Internships
  • Endorse
• BLOG
• Newsroom +
• Articles/Speeches
• The Fuller Connection
• Media Releases
• Event Photos
• Videos
• Resources +
• Downloads
• Voter Resources
• Podcasts
• District Census Data
• Contact Jean

AB 8 Would Impose The Largest Tax Increase On Business In State History

6/6/2007
For Immediate Release
CONTACT: Jeff Caligiuri
(916) 319-2032

Sacramento – Assemblymember Jean Fuller (R-Bakersfield) today defended Kern County residents from the largest tax increase on business in state history by opposing Assembly Bill 8. Fuller argued that the costly government health plan would devastate the state’s economy and hurt hard-working Californians.

“Forcing businesses to pay a costly new jobs tax would force them to consider raising prices on their customers, laying off employees, or closing their doors in California entirely,” said Fuller.

Assembly Bill 8, by Assembly Speaker Fabian Núñez (D-Los Angeles), would require businesses with two or more workers to pay a new 7.5 percent jobs tax to provide mandatory health care for their workers. Fuller argued that imposing a $5 billion tax hike on businesses would make it especially difficult for small enterprises to keep their doors open. AB 8 does not lower costs, provide more affordable choices, or make it easier for businesses to afford the rising costs of health care.

Assembly Republicans argued that AB 8 was a tax increase and should be subjected to a two-thirds vote of the Legislature for passage. Pushing the measure through the Assembly with only a majority vote violates the California Constitution. AB 8 is also likely illegal under federal law because states are prohibited from forcing companies to provide a specific level of health care benefits to their employees.

Assembly Republicans proposed a series of 18 market-based health care reforms this year to strengthen California’s future in a fiscally-responsible manner. These reforms included giving individuals and businesses the power to decide what benefits are included in their health plans, eliminating bureaucratic laws that stand in the way of walk-in neighborhood health clinics, and changing the state’s outdated tax laws so Californians can enjoy the benefits of health savings accounts. Democratic lawmakers rejected most of these proposals with little or no debate.

“It is disappointing that Democrats rejected fiscally-responsible health care reforms authored by Assembly Republicans in favor of their big government solutions that will bust the budget and hurt California’s businesses,” said Fuller.

AB 8 was approved on a party-line vote during today’s Assembly session, with only Democrats voting to pass the measure. It now goes to the State Senate for consideration.

###