DiLorenzo Tax
John DiLorenzo speaks like a true progressive, rich person ("A different health plan," Sunday, May 23).
All taxes are regressive, i.e. the poor pay a larger percentage of their income than the rich. That is especially true of sales tax. Retired people on a fixed income are hit even harder. DiLorenzo has overlooked (conveniently) how much it already costs the retired community and yet wants to add another 5 to 7 percent.
SSI did not increase its in benefits in 2010, nor will it in 2011. I already pay 5 percent of my SSI for the government part B medical premium, my wife pays 7 percent. Because part B is not all that wonderful, our supplemental insurance premiums are 6 percent and 8 percent, so we are paying 11 and 15 percent, respectively; but then we are some of the fortunate ones. If we didn't have 40 quarters of income we would pay an additional 18 percent and 25 percent, respectively.
With DiLorenzo's sales tax option, we could be paying 18 and 22 percent of our income for medical premiums alone. The unfortunate could be paying upwards of 36 to 47 percent of their income.
If that is not bad enough, here is the crowning achievement foisted on us by DiLorenzo's scheme: All the retired people are already taxed for health care insurance (see above). His plan would tax us again for something we could not use.
Notice in the above discussion I didn't bring in anything about property tax, gasoline tax, school district tax, library tax, law enforcement tax and all the special referendum taxes; I only discussed medical premium expenses.
As for the purported silver lining of economic development and job formation; only the state government would benefit. They would need to create another whole department with all the required overhead of personnel, managers and executives. Who knows they might need another building. Plus they would be eligible for PERS.
Why would anybody in our legislature think it is a good idea? Because they could finally achieve the goal of a state sales tax (unlimited revenue). Sure it would only be used for medical expense. Believe that and I have a great bridge I will sell you. No thanks, DiLorenzo, your plan stinks.