Workers still make minimum wage or more. 18 per hour. To prevent many labor intensive business from having a dramatic jump in costs, phase in the tax. Then raise it pennies a year with inflation. The money could be collected by the state income tax division.
Businesses file a monthly or quarterly state income tax form.
The money should be dispersed by a small commission which answers to the governor and legislature. All the money should go into a state health care pool. This program provides health care for the poor. Hospitals get paid more often and there is less pressure to raise rates. More poor people could get Medicaid coverage.