Yesterday, Governor Peter Shumlin announced he would not seak a single-payer health care system for Vermont. This is a huge shift in policy for the governor who has campaigned for a single-payer system for years. He barely won re-election last month, defeating a relatively unknown Republican candidate.
Although he has advocated a state-run system through much of his political career, he waited until after the November election to reveal his funding plan. Employers would have been required to pay an additional 11.5% payroll tax and Vermont residents would have been forced to pay an additional income tax of up to 9.5%. Also, the governor's budget for the plan expanded from an original $1.6 billion to $2.6 billion per year.
The governor blamed a poor economy for his change of mind. The reality, however, suggests Vermont employers and state taxpayers revolted in the last few weeks. (Here)
The Vermont experience should serve as a warning to Washington officials who continue to push for an "innovative", state-run health care system in our state.
