A new constitutional amendment in California would cause taxes to soar in order to establish a universal, single-payer healthcare system.
According to an analysis from the Tax Foundation, Assembly Constitutional Amendment 11 (ACA 11) — which requires two-thirds of both houses of the state legislature for approval — would introduce “surtaxes atop the current individual income tax structure beginning at $149,509 in income,” a “graduated-rate payroll tax system with the top rate kicking in for employees with more than $49,990 in annual income” and a “gross receipts tax of 2.3 percent, excluding the first $2 million of business income.” ACA 11 would go to the voters for final approval if passed by two-thirds of the Legislature.
The net effect would be to “increase taxes by $12,250 per household, roughly doubling the state’s already high tax collections.” The top marginal rate for wages would rise to 18.05% — significantly higher than the nation’s median top marginal tax rate of 5.3%.
The Tax Foundation says that “the new tax package is intended to raise an additional $163 billion per year, which is more than California raised in total tax revenue any year prior to the pandemic.”
According to the text of ACA 11, the single-payer healthcare system would benefit “every resident of the state” — yet further authorize the legislature “upon an economic analysis determining insufficient amounts to fund these purposes, to increase any or all of these tax rates by a statute passed by majority vote.”
California’s new tax proposal occurs as residents continue to flee the state. Indeed, a new report showed that more than 600,000 people have left New York and California for lower-taxed states with less restrictive COVID-19 policies.
Recently, Tesla CEO Elon Musk — who himself moved from the Golden State to Austin, Texas — blasted California lawmakers over a “bizarre” new solar tax, even creating a website for people to send complaints to Gov. Gavin Newsom (D-CA).
The California Public Utilities Commission’s proposal would “evolve decarbonization incentive efforts to meet the state’s groundbreaking clean energy goals” by establishing a “grid participation charge” of $8 per kilowatt for residential solar panel users. Tesla — which operates Tesla Energy, a firm that sells and installs solar panel systems — is condemning the move.
Musk — currently the world’s richest man — paid $11 billion in taxes last year. Nevertheless, Rep. Pramila Jayapal (D-WA) asserted on social media that he was still failing to contribute his “fair share.”
The comment came after Sen. Elizabeth Warren (D-MA) denounced Musk in December for “freeloading off everyone else” and benefiting from “the rigged tax code.” Musk replied to Warren: “And if you opened your eyes for 2 seconds, you would realize I will pay more taxes than any American in history this year.”
Two high-ranking California Department of Education officials were recently revealed to be living outside of California. One resided in Philadelphia, Pennsylvania, while another resided — like Musk — in Texas, an ironic move given California’s ban on state travel to the Lone Star State. Both officials resigned after their stories made national headlines.
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Source: Dailywire
