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California hospitals. (Photo: hcai.ca.gov)

$12,250 per Household Tax Increase for Gov. Newsom’s Single-Payer Healthcare System Proposal

Tax Foundation says California will be doubling the state’s taxes

By Katy Grimes, January 12, 2022 9:55 am

Assembly Constitutional Amendment 11 was introduced last week in the California Legislature to enact significant tax increases to fund universal single-payer health care coverage in California, the Globe reported.

Single payer is a universal state-run healthcare system financed by taxpayers, that covers the costs of healthcare for all residents by a single public system.

Also last week, Assembly Bill 1400, the “Guaranteed Health Care for All” state-run healthcare bill, which has been kicking around the Assembly for several years now, was heard and passed in the Assembly Rules Committee, but not without some strong debate and some would say, rule breaking, or at least blurred lines enough to be a highly dubious passage.

The Tax Foundation reports “this will increase taxes by $12,250 per household, roughly doubling the state’s already high tax collections, to fund a first-in-the-nation single-payer health-care system.”

Previous statewide single payer healthcare proposals elicited estimates of more than $400 billion to implement. The entire 2022-23 state budget proposal is $286 billion.

“The top marginal rate on wage income would soar to 18.05 percent—nationally, the median top marginal rate is 5.3 percent—and the state would adopt a new 2.3 percent gross receipts tax (GRT), at a rate more than three times that of the country’s highest current pure GRT,” the Tax Foundation reported.

“All told, 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.”

They explain the new taxes would take three forms:

  1. Surtaxes atop the current individual income tax structure beginning at $149,509 in income;
  2. A graduated-rate payroll tax system with the top rate kicking in for employees with more than $49,990 in annual income; and
  3. A gross receipts tax of 2.3 percent, excluding the first $2 million of business income.

Gov. Newsom has been pushing for single-payer for several years

The Globe reported in July 2019:

California’s largest cities are reporting growing numbers of homeless, drug addicted and mentally-ill transients living on the streets, while Gov. Gavin Newsom is pushing his plan for single-payer “health care for all.” And, with approval from the governor, the California Legislature voted recently to tax California citizens who do not buy health insurance. This penalty revenue will be used to fund health insurance subsidies to encourage more people to purchase health insurance, and to provide health care to illegal immigrants.

Has anything really changed in two-and-a-half years other than more spending?

Gov. Gavin Newsom signed a bill in 2019 allowing illegal immigrants between the ages of 19 and 25 coverage under Medi-Cal, California’s health insurance program for the poor, disabled, and now for those living in the country and state illegally. State officials estimated about 90,000 additional people would quality at a cost of $98 million per year.

Also in late 2019, a three-judge panel with the Fifth Circuit Court of Appeals struck down the federal Affordable Care Act (ACA)’s individual mandate. Immediately, Gov. Newsom issued a statement expressing his disagreement, and then drilled down announcing the launch of the Healthy California for All Commission to develop a plan for creating a Single Payer system in California.

Newsom mocked the reaction over the controversy the Medi-Cal expansion to illegal aliens generated: “To my friends at Fox News, I know we’re keeping you in business,” he said. He promised to continue expanding health coverage to more undocumented people in future years. “Universal health care is a right regardless of immigration status,” Newsom said. “I’m going to get the rest of that done, mark my words, and make progress next year and the year after that.”

As for the latest single payer healthcare system proposal creating the largest bureaucracy in state history, the Tax Foundation said, “And while 16 states either implemented or enacted individual or corporate income tax cuts in 2021, and more are looking to join them in 2022, California policymakers want voters to approve five new surtaxes, with a top rate of 2.5 percent atop the current 13.3 percent top marginal income tax rate and the proposed new 2.25 percent payroll tax, for a combined top marginal rate of 18.05 percent. This is more than 7 percentage points higher than the next-highest rates in Hawaii (11 percent), New York (10.9 percent), and New Jersey and the District of Columbia (both at 10.75 percent).”

The Globe spoke with Assemblyman Health Flora (R-Ripon) after passage of the “Guaranteed Health Care for All” state-run healthcare bill. “That means we are going to charge every taxpaying Californian making over $49,000,” he said. “ACA 11 is the funding source to AB 1400. When they realize they don’t have enough money to pay for this, they can raise taxes on everyone on a simple majority vote. They wrote that right into the bill. But anything fiscal has to be a 2/3 majority vote.”

Read the whole report from the Tax Foundation.

Proposed Income Surtax and Payroll Tax Would Create 18-Bracket System
Bracket Kick-In
Rate Single Married
2.25% $0 $0
3.25% $9,324 $18,649
5.25% $22,106 $44,213
7.25% $34,891 $69,783
9.25% $48,434 $96,869
10.25% $49,900 $99,800
11.55% $61,213 $122,427
12.05% $149,509 $149,509
12.55% $299,509 $299,509
13.05% $599,013
13.55% $312,865
14.05% $625,371
14.55% $375,220
15.05% $599,013 $750,441
16.05% $625,368 $1,000,000
17.05% $1,000,000 $1,250,737
17.30% $1,299,500 $1,299,500
18.05% $2,484,121 $2,484,121
Sources: ACA 11 (2022); Tax Foundation calculations.
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39 thoughts on “$12,250 per Household Tax Increase for Gov. Newsom’s Single-Payer Healthcare System Proposal

  1. I would propose that the Legislature amend the bill to allow those of us who don’t want to pay these extra taxes to appoint someone, like the Globe Troll, to pay our portion. This would be similar to the House of Representatives allowing “proxy voting”..!!

    Ha ha ha..!!

    Just kidding “W”…!!!

    1. I’m sure Newsome will be exempt and will have government paid private Healthcare. Of these idiots had to live by the same rules, they wouldn’t propose them

  2. Even if this were an earnest effort, which is definitely ISN’T, haven’t we had enough examples in the last three years ALONE of the Gov Newsom-run state’s complete bungling of every single thing it touches? Seriously, now. EDD ring a bell? DMV debacles? Water? Fires? Roads? Crime? Covid response? Homeless/vagrancy? Supply ships sitting forever off the coast? The list goes on, and on, and on…. “Ignore it all!” seems to be the rallying cry. “We’re going for chaos and desperation so it’s all good!” they might as well say.

    I know these Dems want to grab as much taxpayer cash as they can, however they can, and that’s the goal. Toss in some anarchy for extra credit. Fixing, Schmixing! They don’t give a darn about Californians’ health (duh), or if what they propose is needed, or if it is duplicative, or if it’s legal, or anything. This latest proposal is obviously ruinous. Paying twice the taxes to ruin ourselves is beyond insane. Gruesome and the Gang are delusional if they think this B.S. will continue to go smoothly and without consequences for them at this point in their tin-pot wanna-be dictatorship.

    1. You are all missing the main point, Californians WANT ALL THIS!!! They LOVE Gavin Newsome. 2/3 approval. Californians deserve all this crap!! That’s why I live in Utah.

    2. Exactly! Those who have EARNED their money will leave California, leaving behind those that are on the take! You think we have a HOMELESS problem now? Wait until you see it in five years! Time to get out of Kommiefornia now!

  3. Sounds like most of the million illegals that crossed the border last year will be heading to California, home of everything is free unless you are a legal tax paying citizen. What will Gav do when a million tax paying hard working people leave and are replaced by deadbeat, illegal, drug and human trafficking people who will never work? Gavin has probably already purchased his next home in Florida!

  4. You are all missing the main point, Californians WANT ALL THIS!!! They LOVE Gavin Newsome. 2/3 approval. Californians deserve all this crap!! That’s why I live in Utah.

    1. How incredibly rude and aggressive of you. Also I wouldn’t put too much stock in those election results if I were you.
      Not sure why someone who is safely ensconced in Utah —- or so you say —- would even bother to weigh in here with gross generalizations about what Californians want and how they deserve what they get. Why comment here and not on some all-leftist site that would better hit the target? Did you once live here? Well, if you did, you escaped, good for you, enjoy your life. You are free to say what you want of course but I don’t understand why you would even bother yourself to do it.

      1. I lived and worked in California my whole life but NEVER voted Democrat. Do I deserve this? Hell NO. I hate Gavin Newsom and ALL his policies. It’s called VOTER FRAUD and Stupid people that voted this idiot in office

  5. Yeah, but he survived a recall election. Apparently there are a lot of folks living there that are gluttons for punishment. Or the “GimmeDats” have already become the plurality of the state and aren’t paying the bills anyway so for them the whole tax thing is moot. Free $h!# for everyone! That’s all they hear or are about.

    1. He was allowed to raise 70 million to fight the recall. All other candidates were limited to 400k that ran against him. They are dug in so deep he got over a million from pacific gas and electric and 1.5 million from the California association of realtors. They should never be allowed to use dues for one sided candidates or money people pay for power to their homes. The trench is deep.

  6. With CA taxes increasing, Fees ever increasing, City services fees, PG&E (or any energy), daily living costs (food), Cellular, Water, Gas, etc… does anyone have $$ left to pay mortgage or rent. CA is creating a slave to state group now.

  7. (D)s want to make the nation more like California which they see as a model example, of what, who knows. How much more destruction do we witness before taking up arms? California, long a one party state, is what they are now trying to do on a national level, one party rule. Being overly paranoid I feel we’re to late and as a nation we’re through, is my paranoia too soon? Am I alone if feeling like freedom is over? Is anybody still optimistic for California? The nation? Should I still be on mood elevators?

  8. California is ruled by corrupt oligarchs that will not pay an electorate price for their crimes against citizens. I will leave California if this theft is legislated into law.

    1. Yep… At $49K per year, the nice climate ain’t worth it and the numbers REALLY don’t pencil out…

      I’m convinced that Newsom, Young Leadership class of 2005 in Klaus Schwab’s “Dr. Evil for Leaders” World (Domination) Economic Forum ( you know, the “You’ll own nothing and be happy” people) is sold out to the CCP, to drive out as many people as possible, thereby weakening California enough for the eventual Chinese takeover, either economically, militarily, or both…
      NOTHING else makes sense about these proposals…
      I thought he was looking for grateful , compliant illegals’ votes, but his Covid mandates, water mismanagement and economic agenda now leads me to conclude that something far more nefarious is at work here…

  9. Comrades
    Gifts to visitors being from as indentured are expensive, redistribution is the California Dream…..calling posters trolls is seedy and unkind…..you can’t live in a sophisticated instant demand economy without millions of poor folks for Globalists to exploit……so tome scribes cut the insults and just move already……you will not be missed.

  10. “Stunning Videos Show Dystopian Scene from Constant Train Burglaries in Democrat Hellhole Los Angeles”

  11. It’s not just the huge new taxes that will encourage $100K plus people to leave the Golden State. It will be the loss of quality health care.

    Indeed, government health care in CA is a huge incentive for us well-to-do geezers to flee to a better health care state — which at this point would be ANY of the other 49 states. California’s abysmal record of running ANYTHING is unblemished.

    This “reform” will be the issue that will finally convince my wife that we should take our millions and leave. That includes our substantial charity fund that currently benefits primarily California nonprofits.

  12. Everyone in CA has access to health care now. No matter who you are, walk into any ER and you will be treated for whatever is wrong with you. If refused, you will own the medical facility. Medical aid is given with little or no questions on how you will pay. If you want to look at single payer health care and its quality, check out the Veteran’s Administration single payer health program.

  13. While this Governor lives high on the hog, with his state salary and private businesses, affiliated with a Rothschild and a Getty, he wants the rest of us to ante up, to help him buy more votes for illegals. I’m not leaving my beloved California, but I’d sure like to sweep him and his cronies out of office.

  14. Not good news. Taxes are going to increase substantially and it will hurt the middle class. Lower classes may benefit but waiting times are long.

  15. The headline about a $12,000+ tax increase per household is very misleading.
    Let’s say we are looking at ten households. Nine of them have modest incomes and get a tax increase of $1,000 each. But the tenth household is very rich and gets a tax increase of $110,000.
    Guess what! The average increase is $12,000.
    Please be more accurate in headlines!

    1. The Tax Foundation reported: “A proposed constitutional amendment (ACA 11) in California would increase taxes by $12,250 per household, roughly doubling the state’s already high tax collections, to fund a first-in-the-nation single-payer health-care system. The top marginal rate on wage income would soar to 18.05 percent.”

  16. Too many Californians are leaving the state. Doesn’t matter if they are libs or conservatives when it comes to the impact their numbers are having concerning the degradation of the quality of life wherever they move. In Boise Idaho every empty lot is now an UGLY high density apartment building. The traffic is now out of control. A house that sold for $150,000 now costs over $700,00. There is NO end in sight.

  17. How do these idiots feel now that voter for newsom. Our taxes are going up, I hope you’re satisfied with what you did. I guess you idiot democrats will never learn.

  18. Well all I can say is, the loser democrats wanted this, they got it. I guess all I can say for me is, I’m gonna pack my goods and get out of California why they’re getting good and I still have money in my pocket

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