On the recordApril 5, 1994
I know. But there is a ceiling; even for the most prosperous businesses, no one can pay more than 7.9 percent of payroll. For small businesses that are eligible for a discount, it can go down as low as 3.5 percent of payroll. That's the maximum in a sliding scale in there. Let me ask you a question. We don't want to take everybody else's time on this. I would appreciate it if you would actually write to me personally and send me this information. The short answer to your question is, no employer can pay more than 7.9 percent of payroll under our plan. Today, on average, American employers pay between 8 and 9.5 percent of payroll for health care. Small businesses with low average wages are eligible for discounts that will take the payroll costs down as far as 3.5 percent of payroll. I would not favor a small business mandate unless we can provide a discount to small businesses because there are too many that can't afford it. I will say this, though, since you talk about the car dealership. I grew up in the car business, and I had a car dealer from Arkansas and his family staying with me the other night. And he pointed out he provided health insurance for 20 years, as you have, and his is right at 8 percent a payroll. And he said none of his competitors had done it, but he'd put three competitors out of business even though he had to pay it because he never lost any employees. So it's hard for me to believe that your payroll costs would be that great with only 70 employees, and that's why I'd like to ask you to write. There's a ceiling of 7.9 percent for all businesses. Small businesses, depending on their size and their wage, are eligible for discounts that could go down to a low of 3.5 percent. That's how it would work. Immigration [Ms. Hindrew introduced a student who asked if the Federal Government could take steps to educate and train Hispanic immigrants so that States would not feel forced to take drastic anti-immigration measures.]
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