Press Releases

Scranton CPA Speaks on Rendell Health Care Plan

Testimony Warns of Potentially Damaging Effects on Businesses, Consumers

SCRANTON, Pa. – William R. Lazor, a certified public accountant and past president of Pennsylvania Institute of Certified Public Accountants (PICPA), testified on the potential pitfalls in Gov. Ed Rendell’s proposed 2007-2008 health care plan, also know as Prescription for Pennsylvania.

Lazor testified before the Pennsylvania Senate Committees on Banking and Insurance and Finance on behalf of PICPA to address the business community’s concerns regarding provisions that mandate a “fair share” payroll tax on businesses in the Commonwealth. The plan calls for a 3 percent payroll tax on all Pennsylvania businesses to be placed into a Cover All Pennsylvanians (CAP) fund. According to the Rendell administration, refunds would eventually be issued to employers providing adequate insurance to their employees, although the parameters of what will be considered “adequate” has yet to be determined.

Lazor, who is also a member of PICPA’s Legislation Committee, believes the program “would be a heavy financial burden on employers, and it may act as a strong disincentive for employers to add employees or expand their base of operations in Pennsylvania.”

In addition, the legislation could force employers to hire more independent contractors – who are not entitled to the same health insurance and workers compensation benefits as traditional employees – and this would be contradictory to the governor’s intentions.

Founded in 1897, the Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPAs who work in public accounting, industry, government, and education. PICPA is the second-oldest state CPA organization in the United States. To find a member CPA in your area, visit our Web site at www.picpa.org and click on CPA Locator. Students and educators can visit PICPA's specially designed site www.CPAzone.org to get the latest information about careers in accounting and the CPA profession.