2007 Senate Bill 87

Impose “Medicaid tax” on certain large employers

Introduced in the Senate

Jan. 25, 2007

Introduced by Sen. Ray Basham (D-8)

To impose a new “Medicaid tax” on large employers (more than 10,000 Michigan full-time and part-time employees). For businesses the tax would be 8 percent of the firm’s annual aggregate Michigan payroll, minus employee health insurance expenditures. For non-profits the rate would be 6 percent. The tax revenue would be applied to Medicaid used by employees. This would affect employers with many low skill, low pay employees, such as large retail chains. Introduced in a number of states, such proposals are dubbed "Wal-Mart bills." One was passed in Maryland, but found in violation of federal law by a federal court in 2006.

Referred to the Committee on Commerce and Tourism