California Could Double Its Taxes To Start Massive New Social Program
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.”- READ MORE
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