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The Do-Nothing Tax Increase

$30 Billion: The Price of Doing Nothing

Opponents of health care reform in Illinois complain that establishing health coverage for everyone in the state will mean raising taxes. But what they won't tell you is that doing nothing will cost the taxpayers of Illinois $30 billion over the next ten years. The fact of the matter is that if we do nothing about the health care crisis now, it will continue to cost us billions in the future.

A study by highly respected economist Dr. Ken Thorpe shows that a comprehensive plan covering all Illinois residents will save taxpayers $30 billion over the next ten years. Leaving the health care system as it is will cost us at least that much. The do-nothing tax increase will penalize small businesses, the middle class and the working poor. In other words, those who are already struggling the most under the current system will be hit the hardest.

A family of four with no employer-sponsored health coverage earning $60,000 per year pays $15,534 annually for health insurance, on average. That's $11,334 more than what they would pay under a plan like Gov. Blagojevich's Illinois Covered. Supporters of the do-nothing tax increase want Illinois families to pay thousands of dollars for a health care system that does not work.

The impact of the do-nothing tax increase is not limited to familes, though. Small businesses who cover 70% of employee premiums will also face a penalty. In fact, the do-nothing tax increase will cost small businesses $2273 per employee. For a business with 10 employees, that amounts to $22,730 every year.

Large corporations who use legal loopholes to avoid paying corporate income tax should pay their fair share of health care costs. That is the central principle behind Gov. Blagojevich's proposed gross receipts tax. Opponents of health care reform want to maintain the current system, sticking Illinois taxpayers with $30 billion in health care costs.

That is the choice we face: either sit still for a $30 billion do-nothing tax increase, or require big corporations to pay their fair share, allowing families and small businesses to save money on health care costs.