Written by William Hekman
The taxes seem to not stop here in California, as the state continues to get more and more expensive. Instead of finding ways to make living more affordable, Democrats in the California Legislature have decided to try more taxes, this time to pay for single-payer healthcare in the state.
Democrats have pushed a package of bills that would create a universal healthcare system in the state, CalCare. The Democrats tried this last year, but it was pulled after lawmakers highlighted that there was no funding source for the program along with criticism that there were no hearings. But now, the Democrats have put forward a bill that they say will provide funding for the program. ACA 11 (Assembly Constitutional Amendment) will “impose an excise tax, payroll taxes, and a State Personal Income CalCare Tax at specified rates to fund comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of every resident of the state, as well as reserves deemed necessary to ensure payment, to be established in statute.” The amendment will need to be passed by two-thirds of both the Assembly and the Senate, a tall task even for the Democrats who hold a super-majority in both houses. The taxes with the amendment include a 2.3% excise tax on businesses after their first $2 million in income, a 1.25% payroll tax on employers with 50-plus workers., and an additional 1% payroll tax on wages for resident employees earning more than $49,900. Back in 2017, state analysts said that the state single-payer program would cost $400 billion.
Governor Gavin Newsom promised voters to bring single-payer healthcare when he ran in 2018, and there is pressure coming from lobbyists and progressive activists for him to get it done. Republicans like Assemblyleader Marie Waldron criticized the program and pointed out that the state has failed in every program they have taken on, “I look forward to hearing Democrats explain how they plan to successfully take over more than 10% of the state’s economy when in the last decade they’ve proven themselves incapable of simple things like building a railroad, providing clean drinking water, keeping the lights on and filling potholes.”
Photo Cred: Rich Pedroncelli, AP Photo
