Assembly Passes Health Mandate
With looming tax increasesneeded to fund it, AB 1X passes off the Assembly floor, on a party line vote of 46-31. The voters will likely be asked to pass a package of tax increases in November ’08 that would raise taxes on hospitals, employers payroll from 1-6.5%, and tobacco,to fund the projected, at least in Year 1, $14,000,000,000 health program, toprovide benefits for users at up to 400% of the federal poverty level.
With the Democrat drumbeat for tax increases to fix the current $14,000,000,000 budget messstarting up, I wonder what Dem tax increase ideas will be left over for eitherbudget or health. Tobacco tax was bumped up a few years ago, the sales tax also, 9% in some lucky jurisdictions. The richest Californians[or those at the 700% of poverty level I like to say] were hit by Prop 63 a couple years ago.It will be much more difficult to raid counties or the transportation funds now, with propositions rightly passed by voters to safeguard these funds from a hungry state budget.
The taxes on these 3 items are seen inDem floor arguments as a "self-funding" mechanism for… Read More