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| Wilson urges Mayor Baca`s cooperation in repeal of health care tax |
February 05, 2001 |
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February 5, 2001
The Honorable Jim Baca
Mayor
City of Albuquerque
P.O. Box 1293
Albuquerque, New Mexico 87103
Dear Mayor Baca,
I was very surprised to read in the Albuquerque Journal and the Albuquerque Tribune last week of your administration’s opposition to repeal of the gross receipts tax on health care services. It was particularly troubling to see that your chief aide, Lawrence Rael, promised that Albuquerque officials will urge legislators to reject a proposal to repeal gross receipts taxes for health care.
Your position is particularly bewildering in light of your letter to me September 27, 2000. In that letter, you expressed your concern about New Mexico’s burgeoning health care crisis:
“Albuquerque is the largest metropolitan area in the state, and yet cannot provide its citizens with even the most basic health services in a timely manner, nor can it provide the necessary specialist services required and demanded by a city this size. The City of Albuquerque has little ability to address these problems on its own…”
It’s the people who desperately need health care they can’t afford, or medicines that cost too much, who have the problem. It is the responsibility of all levels of government to work together to find real solutions for the real problems individuals and families face in getting the health care they need.
In my remarks to the joint session of the Legislature, I proposed repeal of the Gross Receipts Tax on medical services, but I also urged the lawmakers to find a way to mitigate the impact on municipalities who are dependent on that revenue. It is useful to keep in mind, when we talk about revenue losses, that when doctors who graduate from our medical school leave New Mexico, they take with them the millions of dollars New Mexico taxpayers invested in educating them. We are, in effect, subsidizing health care in neighboring states who get top quality health care providers without investing a dime in their education.
I am proud that I won Congressional approval and the President’s signature on my proposal to increase reimbursement rates for seniors enrolled in Medicare Plus Choice plans. Getting those rates closer to the rates paid in other states will keep some doctors here and restore better Medicare options for thousands of New Mexicans.
There’s a general rule in economics. When you subsidize something you get more of it and when you tax something, you get less of it. That’s been true with health care, and it’s been proven by the exodus of physicians from New Mexico and the decline in health care options available to New Mexico’s families. To change that, the state must reduce the tax load we impose on health care.
I appreciate your interest in finding ways to strengthen our health care system, and hope that you will reconsider your opposition to reducing the taxes on health care services.
The latest reports indicate that New Mexico is faced with a budget surplus surpassing $500 million. I can’t think of a better use for these dollars than strengthening New Mexico’s education and health care systems. I invite you to come to the table and join me and others who are determined to assure that people in New Mexico have access to the health care they deserve.
The people of Albuquerque who need health care need you to come to the table and work with the legislature to find a way to end the gross receipts tax on health care while minimizing the impact on our cities.
Sincerely,
Heather Wilson
Member of Congress |
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