California union proposes taxing billionaires to offset Medicaid cuts

SACRAMENTO, Calif. -- A large national announced a connection Thursday to enforce a one-time 5% taxation connected billionaires successful California to code national backing cuts to wellness attraction for low-income people.

Proponents, including the Service Employees International Union, anticipation to spot the statewide measurement earlier voters adjacent year. The taxation would beryllium connected the nett worthy of California's richest residents. A tiny information of the wealth would besides assistance money K-12 acquisition since the national authorities has threatened to withhold assistance wealth from nationalist schools.

Backers of the measurement sent a petition to Attorney General Rob Bonta this week to get support to commencement collecting signatures. The connection would person to person much than 870,000 signatures by adjacent outpouring to suffice for the ballot successful November 2026. If it qualifies, it's not guaranteed to pass. Democratic Gov. Gavin Newsom, for example, has opposed taxation hikes successful the past, including those specifically targeting the rich.

Proponents of the inaugural said it was captious to backfill cuts to Medicaid due to the fact that lives are astatine stake.

"If we bash not bash this, millions of radical are going to suffer wellness care, an untold fig of radical volition spell without attraction and determination volition beryllium calamity aft tragedy," said Dave Regan, president of SEIU-United Healthcare Workers West.

Billionaires would person to wage for taxation twelvemonth 2026, and the wealth could commencement being appropriated successful 2027. The taxation would make $100 cardinal successful gross for the state, backers say. The inaugural says it's "designed to marque the State taxation strategy much equitable."

The large taxation and spending cuts instrumentality President Donald Trump signed earlier this twelvemonth volition chopped much than $1 trillion implicit a decennary from Medicaid and national nutrient assistance.

The California Budget and Policy Center, a deliberation vessel successful Sacramento, estimated the authorities could suffer $30 cardinal successful national backing a twelvemonth for Medicaid, which would effect successful up to 3.4 cardinal radical losing their coverage.

Newsom said earlier this period that radical enrolled successful Covered California, the state's wellness security marketplace, could spot their monthly wellness attraction bills astir treble adjacent twelvemonth arsenic a effect of the spending cuts law.

"California has led the federation successful expanding entree to affordable wellness care, but Donald Trump is ripping it away," helium said.

Proponents of the projected ballot inaugural accidental billionaires person an work to bash their part.

"We anticipation that immoderate and possibly hopefully a ample fig of billionaires volition admit that it's important successful the authorities wherever they've grown their luck that they person a work to nine to sphere the aboriginal of California," said Emmanuel Saez, a prof of economics astatine the University of California, Berkeley.