Tag Archives: Maryland Health Benefits.

Unequal unfairness

Maryland has passed a law aimed specifically at corporations with more than 10,000 employees that fail to provide health benefits to fiscally significant portions of their workforce (and thus burden the state's real welfare system). Not surprisingly, of the four corporations that fall under the new law, only Wal-Mart falls short. According to the *Washington Post*:

Wal-Mart says that more than three-quarters of its sales associates have health insurance but acknowledged that some of its low-wage workers are on Medicaid, the state insurance program for the poor. Wal-Mart's not providing even the 21st Century version of benefits (that is to say, extremely reduced) to some of its workforce, constitutes, according to the Maryland legislature, a kind of corporate welfare; they are receiving a benefit but doing nothing to earn it. The state has to pick up the cost of Wal-Mart doing business (or figure out some other way of paying for the healthcare of those of Wal-Mart's workers and their children). Under the new law, passed over a veto, they have asked that Wal-Mart pick up the slack.

Maybe it's wrong to treat some corporate monoliths less equally than others, as George Will today writes, but the frothy eagerness with which he presses his case makes that argument hard to assess. He responds to the Maryland legislature by claiming that Wal-Mart's benefits are substantial and generous: a fact he had already denied–it's not a welfare state (i.e., a corporation that pays out benefits)–and not even Wal-Mart is willing to assert. Rather than dwell on the generosity of the benefits, or the principled view that low wage workers do not deserve benefits, Will opts for the ridiculous libertarian classic: the slippery slope:

Maryland's new law is, The Post says, "a legislative mugging masquerading as an act of benevolent social engineering." And the mugging of profitable businesses may be just beginning. The threshold of 10,000 employees can be lowered by knocking off a zero. Then two. The 8 percent requirement can be raised. It might be raised in Maryland if, as is possible, Wal-Mart's current policies almost reach it.

The dumb thing about this argument is that it's just one tweak away from being cogent. Rather than alleging that any law aimed at a corporate monolith could one day be aimed at the small businessman, Will could argue that as a matter of fairness, other employers ought to be required to bear healthcare costs.

Even dumber, however, is the claim that such a taxing of a corporate giant is somehow on par with actual illegal corruption:

 Meanwhile, people who are disgusted — and properly so — about corruption inside the Beltway should ask themselves this: Is it really worse than the kind of rent-seeking, and theft tarted up as compassion, just witnessed 20 miles east of the Beltway, in Annapolis?

No. It is not worse. The behavior of an elected body even in the perhaps imprudent exercise of its power to tax is quite unlike the demonstrably corrupt and illegal behavior of leading Republican politicians and lobbyists. Quite unlike it indeed.