On July 1, New Jersey became the first state to impose an annual fine on employers who employ workers enrolled in the state’s Medicaid program. Companies that have at least 50 employees will pay annual fees of $325, $525, or $725 for each worker on Medicaid and for each of their family members. Nearly 750 companies and non-profits will face the sudden “ambush tax,” which was signed into law only one week after being introduced as a bill.

California Governor Gavin Newsom is climbing aboard the scam by signing the “Fair Share From Big Corporations Act” ordering a potential “premium payment” tax for employers with workers enrolled in Medicaid. Three other Blue States – Colorado, Oregon and Washington – are said to be fast tracking legislation.

Does this make any sense? They are going to tax employers for hiring low-skilled workers?  This will mean not more health care coverage, but fewer paychecks. This also sends out a blaring message to employers: don’t hire low-wage workers who may go on Medicare.

This is a terrible idea. Companies that create jobs for low skill workers should be celebrated, not made to pay even more taxes than they do now. Even progressive health care analyst Jennifer Spiegel testified against the concept in New Jersey, saying it could discourage the hiring of people on Medicaid and damage non-profits and employers with thin profit margins.