OKLAHOMA CITY (August 24, 2010) – State Rep. Dan Sullivan today praised the Oklahoma Supreme Court for declaring a tax on health insurance payments to be unconstitutional. “I argued against this measure when it reached the House floor because I believed it was an unnecessary tax on business and I agree with the court’s decision,” said Sullivan, R-Tulsa. House Bill 2437 would have levied a 1-percent tax on insurance payments, increasing the cost of health care for working families by $78 million per year. Insurance Commissioner Kim Holland has challenged the bill in court, saying it was enacted unconstitutionally.

The Oklahoma Constitution states that revenue-raising measures cannot be passed in the final five days of the legislative session and that tax increases must receive three-fourths support in both the House and Senate or be sent to a vote of the people. House Bill 2437 was approved in the final week of session and did not receive the support of a supermajority in either chamber of the Legislature. Sullivan noted those flaws when he debated against passage of House Bill 2437 on May 24, saying it would be struck down by the court. In an order assuming original jurisdiction, a majority of justices today declared, “H.B. 2437 was enacted in violation” of Article 5, Section 33B and 33D of the Oklahoma Constitution and “is not to be enforced.” Sullivan noted the tax would have applied to self-insured employers, and not simply insurance companies. “Those self-insured companies all across Oklahoma would have been subject to this tax,”

Sullivan said. “This is not the time to be raising taxes on businesses that are already struggling in a national recession. We need to find other ways to fund our Medicaid program than to rely on job-killing taxes.” Sullivan said incoming House leadership has developed a plan that would create the revenue necessary for Medicaid funding without relying on a tax increase. “As chair of the House Economic Development and Financial Services Committee, I have worked hard to hold the line on potential increases to healthcare costs and premiums,” Sullivan said. “We already have too many people in Oklahoma who cannot afford health insurance. A tax that increases the cost of health care does nothing to help the uninsured and would actually force more people to drop coverage.” To view Sullivan’s May 24 debate against the health tax in House Bill 2437, go to http://okhouse.mediasite.com/mediasite/SilverlightPlayer/Default.aspx?peid=ddce3cf779894636b90a7dff80c6c40b1d&playfrom=14670000

2010 brings many new challenges and opportunities to our country and state. While many look only to the negative side of a difficult economy, I believe we have an opportunity to look at the true focus of the services that our state government provides. Dealing with such a large failure of revenue will bring about changes that would not be made otherwise. As I talk with families and business people, all are in agreement that they have had to make significant changes in their own budgets and the state government should do the same.

As Chair of the Economic Development and Financial Services Committee in the House, I look forward to continuing our work to provide more opportunities for our citizens. By creating a business friendly state, we will work to keep the business we already have and attract new business as we come out of this economic downturn. We believe that positioning our state to be economically competitive today will bring great results in the future.

One of our main legislative goals for this year is to make necessary changes to our Worker’s Compensation system. The current system does not adequately serve the injured worker or their employer and we have seen how the status quo kills jobs. When companies either choose to expand elsewhere or simply move out of our state because the cost of worker’s compensation is too great, we must act now to save jobs and be competitive for the future.

As the 2010 election draws closer, we will be updating this site more frequently. As always, feel free to call my office at the Capitol at 405-557-7361 or email me at DanSullivan@okhouse.gov. Thank you for the honor you have given me to represent the people of House District 71 in the Oklahoma House of Representatives.

Sincerely,