Whitfield Says 'No' to Tax Hike in Midst of Economic Recession | News | Congressman Ed Whitfield

News | Congressman Ed Whitfield | United States Representative

Whitfield Says 'No' to Tax Hike in Midst of Economic Recession January 14, 2009 WASHINGTON - U.S. Representative Ed Whitfield (KY-01) stood up for Kentucky taxpayers already hit hard by the economic recession today, voting against an expansion of the State Children's Health Insurance Program (SCHIP) which would allow illegal immigrants to fraudulently enroll in the program; move hundreds of thousands of people from private insurance to government-run healthcare; and increase tobacco taxes by over $70 billion over the next ten years.

"SCHIP is a critical safety net for millions of American families who cannot afford health insurance for their children - a program I have been proud to support since its inception," Whitfield said. "Unfortunately, the expansion of SCHIP passed by the House today fails to put needy American children first. Instead it saddles working-class Kentuckians with higher taxes in order to provide health insurance to adults and higher-income families and leaves the door wide-open for illegal immigrants to receive benefits. During an economic recession, higher taxes are the last thing Americans need."

SCHIP was established in 1997 by a Republican-led Congress to ensure children in low-income families who do not qualify for Medicaid and who do not have health insurance can receive quality healthcare. Since the program was started, nearly $40 billion in federal funding has been provided to low-income children. Whitfield voted to create SCHIP and has been a staunch supporter of the program ever since.

The bill Whitfield voted against today would increase tobacco taxes by over $70 billion over the next ten years. This tax on a critical Kentucky crop would not only adversely affect the Commonwealth's tobacco industry, but hit low-income American families the hardest during an economic recession. Furthermore, the bill uses a budget gimmick to pay for the program expansion that would require additional tax hikes in five years.

The legislation also enables illegal immigrants to fraudulently enroll in Medicaid and SCHIP. The bill severely weakens current law by no longer requiring applicants for the two programs to present proof of their identity when applying for coverage. A verbal presentation of any Social Security Number would suffice for proof of identity, opening up the door to fraud and abuse of both SCHIP and the Medicaid program. According to the Congressional Budget Office (CBO), this loophole would lead to $3.7 billion in additional Federal Medicaid spending over the next 10 years and $2.8 billion in state spending. In total, it would cost American taxpayers $6.5 billion.

The expansion of SCHIP would also extend eligibility to higher-income families. Presently in Kentucky, children in families who are at or below 200% of the poverty level qualify for SCHIP coverage. The bill the House passed today would allow states to enroll children in families who are at or below 400% of the Federal Poverty Level. Since each state is allowed to determine the eligible poverty level for SCHIP, a family in Kentucky earning $45,000 a year could see their taxes raised to pay for a child in New York to receive coverage whose family earns more than $85,000.

The legislation would also move hundreds of thousands of individuals from private health insurance coverage to government-run healthcare coverage, putting important health care decisions into the hands of Washington bureaucrats. In addition, more adults could now receive SCHIP benefits. According to the CBO, this bill could result in over 500,000 more adults enrolled in the program by 2012. Today there are already more than 700,000 adults participating in SCHIP. This means that in three years 1.2 million adults could be enrolled in a program intended for children.

Whitfield joined more than 160 of his colleagues earlier this week, sending a letter to House Speaker Nancy Pelosi and President-elect Barack Obama asking that Congress fully debate and consider a reauthorization of SCHIP which would address the concerns noted by Whitfield and ensure that low-income children remain the priority of the program.

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