GOVERNOR GAVIN NEWSON DOUBLES YOUR TAXES?

A new healthcare proposal that would nearly double California’s tax revenue has the potential to push more people out of the state.
The ambitious legislative proposal would create a single-payer healthcare system and use the increased taxes to fund it. While the legislation faces an uphill battle, Gov. Gavin Newsom has publicly voiced support for single-payer systems in the past. He has yet to weigh in on the new legislation.

Jared Walczak, vice president of state projects at the Tax Foundation, told the Washington Examiner that if passed, the legislation would amount to a $163 billion per year tax increase that would effectively double state collections. That increased revenue comes with a cost, though, one borne by taxpayers that could push residents to lower-tax states.

“You would expect to see a substantial exodus of businesses and middle- and high-income earners,” Walczak said of California if the tax-and-spend proposal were to become law.

“Migration out of states like California and New York has been persistent. Every year, we see an out-migration from these states and high levels of in-migration to some of the lowest-taxed states,” Walczak said. He made the point that these are long-term trends, as a sizable number of people temporarily relocated to different states during the pandemic because of the ability to work remotely.

But does this legislation have a chance of becoming law?
The dramatic change is likely to face an uphill battle given that it would require a constitutional amendment (and thus a supermajority of the Legislature), as well as the support of voters, as it would end up on the ballot. While Democrats control both chambers and the single-payer legislation already made it through committee, some of the more centrist members may not throw their weight behind such a drastic change to the state’s tax code.

Business groups such as the California Chamber of Commerce are already fighting against the changes and will lobby the public to vote down the tax changes should the proposal make it to ballot boxes. The chamber has said that even with the tax hikes, the CalCare system would still be too costly.

California taxes would rise again to pay for Newsom universal health care, including for illegal immigrants

A tax hike on people and businesses that earn more than $149,509 a year to support the program is progressing through the state legislature

California Gov. Gavin Newsom is hoping to make his state the first to offer universal health care to all residents, but it would mean raising taxes to help pay for it.

Newsom announced the plan Tuesday, stating that he wants to provide coverage for everyone living in the state, including illegal immigrants.

CALIFORNIA GOV. GAVIN NEWSOM OUTLAWS PRICE GOUGING ON-AT-HOME COVID-19 TESTS
"Here in the largest state in our union, the state of California, we are positioned with this budget to be able to deliver on what we’ve been promoting: universal health care for all, regardless of the pre-existing condition, regardless of the ability to pay and regardless of your immigration status," he said.

The Democratic governor also had a message for those who oppose such a move, claiming, "We have universal health care in this state, in this country, but it’s only on the back end. It’s called the emergency room and it’s costing you, the taxpayer, a fortune."
Newsom said his plan is for this to take effect in January 2024 if approved.

"We said we were going to do it," Newsom said. "We said it would take a few years. We're committed to doing it."

The Democratic governor said his state's budget surplus would help in paying for the program, which Newsom said is estimated to cost upward of $2 billion.
The rest would come from raising taxes. Assemblyman Kevin Kiley, a Republican who is now running for Congress, has railed against state legislation that aims to raise state taxes a total of $163 billion to pay for health care. On Tuesday, he confirmed that the Assembly’s Health Committee approved a single-payer health care measure by a vote of 11-3. The new taxes would be imposed on individuals and businesses earning more than $149,509 a year.

"Gov. Newsom spent hours at the podium reveling in his $286 billion budget," Kiley tweeted. "That's up to $100 billion in five years. I've never seen anyone so gleeful about lighting cash on fire."