Fury as more taxes set to be thrust on Californians as key vote passes
Key Points:
- California Democrats have sent tax proposals to Governor Gavin Newsom that could increase health insurance premiums and impose a new tax on software downloads, as part of negotiations on the $356 billion state budget.
- One measure aims to extend a tax on health care providers to generate about $2 billion annually, potentially raising private health insurance costs by around $100 per individual or $400 per family each year.
- Another approved tax targets software products like Slack and Microsoft Suites, expected to raise $900 million annually, though tech groups warn it could hinder innovation and increase business expenses.
- Republicans criticize the tax measures for worsening affordability and burdening hospitals and families, with GOP gubernatorial candidate Steve Hilton proposing income tax cuts and a flat tax increase as alternatives.
- Democrats argue the taxes are necessary to address budget shortfalls caused by reduced federal funding and to ensure responsible fiscal planning for California's future.