\n\t\t\t\t\t\tCalifornia’s Democratic State Senators are proposing a new tax on major corporations to help with the state’s health care costs. The group of lawmakers Thursday released an outline of their proposed budget plan, which includes the new fee on major companies. The new tax would specifically apply to the state’s top 2% of corporations, requiring them to contribute to the state’s program that provides health insurance to low-income Californians known as MediCal. Under the proposal, the new tax would take effect in January of 2027 and is estimated to generate between $5 billion to $8 billion. The money would be placed into a special fund. The proposal is in response to concerns from various local governments and healthcare groups that have said California will have to grapple with a $9.5 billion healthcare hole annually as a result of federal health care cuts through H.R.1, also known as the “Big Beautiful Bill.” The push also comes as health care labor group SEIU-UHW works to get a new billionaire’s tax on the ballot to help with health care costs. That proposal involves a one-time, 5% tax on the wealthiest people living in the state. Gov. Gavin Newsom and some Democratic lawmakers have said they do not support it.Senate Pro Tem Monique Lim\u00f3n shut down suggestions that the Senate’s new push was meant to counter the SEIU-UHW’s proposal. “The Fair Share Contribution is in response to the devastating federal H.R.1 cuts that decimate healthcare for Californians. The billionaire\u2019s tax is not on the table,” she told KCRA 3 in a statement. Last year, behind closed doors, Democrats floated the idea of the penalty on companies such as Walmart and Amazon as the state grappled with soaring MediCal costs. Rob Lapsley, the leader of the California Business Roundtable which represents the largest corporations, warned if businesses paid more, consumers would pay more. A spokesperson for Gov. Gavin Newsom did not immediately respond to a request for comment Thursday as of afternoon.The proposal will be part of negotiations over the next two months as lawmakers and the governor sort out the state spending plan for the upcoming year. Assembly Democrats are expected to release their proposal in the coming weeks. Republicans also propose spending solutions, but because Democrats hold a supermajority at the state capitol, meaning Republican votes are not needed to pass the state budget. Gov. Gavin Newsom is required to release an updated state spending plan in May. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel\n\t\t\t\t\t<\/p>\n
\t\t\t\t\t\tSACRAMENTO, Calif. \u2014 \t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n
California’s Democratic State Senators are proposing a new tax on major corporations to help with the state’s health care costs. <\/p>\n
The group of lawmakers Thursday released an outline of their proposed budget plan, which includes the new fee on major companies. The new tax would specifically apply to the state’s top 2% of corporations, requiring them to contribute to the state’s program that provides health insurance to low-income Californians known as MediCal. <\/p>\n
Under the proposal, the new tax would take effect in January of 2027 and is estimated to generate between $5 billion to $8 billion. The money would be placed into a special fund. <\/p>\n
The proposal is in response to concerns from various local governments and healthcare groups that have said California will have to grapple with a $9.5 billion healthcare hole annually as a result of federal health care cuts through H.R.1, also known as the “Big Beautiful Bill.” <\/p>\n
The push also comes as health care labor group SEIU-UHW works to get a new billionaire’s tax on the ballot to help with health care costs. That proposal involves a one-time, 5% tax on the wealthiest people living in the state. Gov. Gavin Newsom and some Democratic lawmakers have said they do not support it.<\/p>\n
Senate Pro Tem Monique Lim\u00f3n shut down suggestions that the Senate’s new push was meant to counter the SEIU-UHW’s proposal. <\/p>\n
“The Fair Share Contribution is in response to the devastating federal H.R.1 cuts that decimate healthcare for Californians. The billionaire\u2019s tax is not on the table,” she told KCRA 3 in a statement. <\/p>\n
Last year, behind closed doors, Democrats floated the idea of the penalty on companies such as Walmart and Amazon<\/a> as the state grappled with soaring MediCal costs. Rob Lapsley, the leader of the California Business Roundtable which represents the largest corporations, warned if businesses paid more, consumers would pay more. <\/p>\n A spokesperson for Gov. Gavin Newsom did not immediately respond to a request for comment Thursday as of afternoon.<\/p>\n The proposal will be part of negotiations over the next two months as lawmakers and the governor sort out the state spending plan for the upcoming year. Assembly Democrats are expected to release their proposal in the coming weeks. Republicans also propose spending solutions, but because Democrats hold a supermajority at the state capitol, meaning Republican votes are not needed to pass the state budget. <\/p>\n Gov. Gavin Newsom is required to release an updated state spending plan in May. <\/p>\n See more coverage of top California stories here<\/a> | Download our app<\/a> | Subscribe to our morning newsletter<\/a> | Find us on YouTube here and subscribe to our channel<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"California’s Democratic State Senators are proposing a new tax on major corporations to help with the state’s health…\n","protected":false},"author":2,"featured_media":272069,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8,1751,457,5037,17546,9474,118017,31054,118015,115818,3011,3906,118016,61640,4975,17283,225,118018],"class_list":{"0":"post-272068","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-california","8":"tag-california","9":"tag-california-headlines","10":"tag-california-news","11":"tag-democrats","12":"tag-gavin-newsom","13":"tag-gov-gavin-newsom","14":"tag-hea","15":"tag-health-care-cost","16":"tag-healthcare-hole","17":"tag-low-income-californians","18":"tag-major-company","19":"tag-may-revision","20":"tag-medical","21":"tag-month","22":"tag-new-billionaire","23":"tag-new-tax","24":"tag-proposal","25":"tag-response","26":"tag-state","27":"tag-wealthy-people"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/272068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=272068"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/272068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/272069"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=272068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=272068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=272068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}