26 June 2018 Maine 2018 ballot initiative would require employer payroll tax for universal home care — universal healthcare trending across the US A ballot initiative is awaiting voter approval that would establish the Universal Home Care Program, which would be funded by a shared employer/employee payroll tax on high income earners (defined as an employee who earns annual wages of more than the Social Security wage base in effect for the year) and a tax on nonwage income. Voters will decide on this initiative on November 6, 2018. The Maine Secretary of State requested comments on the ballot question, with the comment period ending June 15, 2018. The program would be designed to provide long-term home healthcare and social services to adults age 65 and older and those individuals with physical or mental disabilities. These services would be provided at no cost to qualifying individuals and their families. Beginning January 1, 2019, the program would be funded through a 3.8% payroll tax, shared by the employer and employees at a rate of 1.9% each, and would be taxed on annual employee income exceeding the Social Security taxable wage base for the year (i.e., if effective for 2018, the threshold would be $128,400). The measure would also impose a 3.8% excise tax on nonwage income for high income individuals (i.e., stock dividends and interest). "Do you want to create the Universal Home Care Program, which will provide services to people with disabilities and senior citizens who need daily assistance in their homes, funded by a new tax of 3.8% on individual income over $128,400?" As we previously reported, legislation (L.D. 1612; L.D. 1618) was introduced last year to establish universal family and child care programs. These bills failed to be considered. Universal healthcare continues to trend in state legislatures across the US. News sources are reporting that the topic of universal and one-payer healthcare is playing a large role in the 2018 gubernatorial primaries, particularly for Democratic candidates. — California. As we previously reported, California tried unsuccessfully to pass single-payer healthcare legislation in 2017 (SB 562), and news sources are reporting that the possibility of passage in 2018 is uncertain. — Colorado. In 2016, Colorado also attempted to establish such a plan, through voter ballot, only to fail to win voter support. — New York. In New York, AB 4738/SB 4840 (which was passed by the House in 2017, failed in the Senate, and this year returned to the House and has been referred to the House Ways and Means committee) would establish a single-payer healthcare system. The program would be funded by a graduated payroll tax, of which employers would be required to pay at least 80%. — Massachusetts. In Massachusetts, HB 2987 would also establish a single-payer healthcare system, funded by a payroll tax of 7.5% for employers (7.94% for employers of 100 or more employees) on employee wages over $30,000; an employee withholding tax of 2.5%; and a self-employed/nonwage tax of 10% on income over $30,000. — Vermont. Vermont, which contemplated such a change in the past, only to find the idea too costly, has had revitalized interest in universal healthcare. SB 53, which has passed the Senate and is currently under review by a House committee, would direct the Green Mountain Care Board to convene meetings with interested stakeholders to determine whether there is a way to achieve affordable universal healthcare. — Washington. If enough signatures are collected, Washington state voters may see a universal healthcare initiative on the November 2018 ballot. Initiative 1600 would require establishment of a universal healthcare program for all Washington residents by 2020, funded by premiums and taxes on employers, individual income tax, and capital gains tax.
Document ID: 2018-1301 | ||||||||||||||
