An alternative way to fund the expansion of health coverage in California may be gaining momentum. Over the past week or so, more business groups have come out in favor of putting a sales tax increase on the ballot. From Sacramento, Marianne Russ reports.
The California Restaurant Association spear-headed the idea: a one-cent sales tax to pay for expanded health insurance. And recently, the California Retailers Association and the California Small Business Association have signed on, too.
Restaurant Association President Jot Condie says the tax is more feasible than the fees businesses would have to pay under the governor's and the Democrats' plan -- but it would still affect eateries and stores.
Condie : Retailers and restaurants are probably, together, the largest payers of sales tax in the state, because retailers and restaurants are also purchasing a lot of items that are taxable.
Condie says the tax would generate $5 billion a year. They hope to put the measure on the November's 2008 ballot.
The Assembly Republican leader said he wasn't a fan of the idea -- and his Democratic counterpart said while it was a noble gesture, it passed the buck on to customers.
The Restaurant Association hopes to put the measure on next November's ballot.
