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California Assembly Chambers. (Photo: Kevin Sanders for California Globe)

Constitutional Amendment Proposed to Enact Tax Increases for CA Single-Payer Health Care System

Lawmakers say ‘comprehensive health care coverage for every resident of California is a right’

By Chris Micheli, January 6, 2022 6:10 am

On January 5, Assembly Constitutional Amendment 11 was introduced by Assembly Members Ash Kalra and Alex Lee proposing to enact significant tax increases to fund universal single-payer health care coverage and cost controls. Co-authors include Assembly Members Mia Bonta, Wendy Carrillo, Laura Friedman, Adrin Nazarian, and Miguel Santiago, as well as Senators Dave Cortese, Lena Gonzalez, Sydney Kamlager, Mike McGuire, and Scott Wiener.

ACA 11 would propose an amendment to the California Constitution to add Section 16 to Article XIII B and to add Article XIII E. If passed by a 2/3 vote of each house of the Legislature, the measure would be placed on the statewide ballot in November to enact significant tax increases to fund health care coverage and cost controls.

ACA 11 would have to then be adopted by a majority of the statewide electorate in November. If enacted, it would impose an excise tax, payroll taxes, and a personal income tax in order to fund comprehensive, universal single-payer health care coverage, as well as a health care cost control system. In addition, if adopted by the voters, ACA 11 would authorize the Legislature, upon an economic analysis determining insufficient amounts to fund these purposes, to increase any or all of these tax rates by a statute passed by majority vote of both houses of the Legislature.

In addition, ACA 11 would establish the CalCare Trust Fund in the State Treasury and would deposit these tax revenues in that Fund for the purpose of funding this health care coverage, cost control system, and reserves, and would authorize the Legislature to appropriate these funds by a statute passed by a majority vote of the membership of both houses.

ACA 11 contains three findings and declarations, including that “comprehensive health care coverage for every resident of California is a right”; Californians will greatly benefit from having in place a comprehensive universal single-payer health care system; and, it is the intent of the Legislature to adopt a statutory program of comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of every resident of the state before tax revenues are levied pursuant to this measure.”

First, ACA 11 would add Article XIII B to exclude from the State Appropriations Limit the revenues from the CalCare Trust Fund collected to fund comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of every resident of the state, and reserves deemed necessary to ensure payment.

Second, ACA 11 would add Article XIII E, which would be titled, “Taxation to Fund Health Care Coverage and Cost Control.” It would impose the following state taxes for the purpose of funding comprehensive universal single-payer health care coverage:

  • An annual excise tax upon a qualified business, as defined by the Legislature, for the privilege of doing business in this state at a rate of 2.3 percent of the gross receipts of that qualified business minus the first two million dollars in annual gross receipts of that business.
  • A payroll tax on every employer who pays wages or other compensation to 50 or more resident employees for services performed either within or without this state at a rate of 1.25 percent of the aggregate amount of wages or other compensation paid by the employer to the resident employees.
  • A payroll tax on every employer who pays wages or other compensation to resident employees for services performed within or without this state at a rate of 1 percent of the aggregate amount of wages or other compensation paid by the employer to the resident employees in excess of $49,900 per resident employee.
  • An additional tax for each taxable year upon the entire taxable income of every resident of this state in the following amounts (and adjusted for inflation annually based on the California Consumer Price Index):

For taxable income:

The marginal tax is:

$149,509 but not over $299,508

0.5% of the taxable income

$299,509 but not over $599,012

1% of the taxable income

$599,013 but not over $1,299,499

1.5% of the taxable income

$1,299,500 but not over $2,484,120

1.75% of the taxable income

$2,484,121 and above

2.5% of the taxable income

Third, ACA 11 would allow the Legislature in a specified instance to pass a statute by majority vote to increase any or all of the tax rates imposed above.

Fourth, ACA 11 would require all revenues derives from the taxes rates imposed above to be deposited into the CalCare Trust Fund for the sole purpose of funding comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of every resident of the state, and reserves deemed necessary to ensure payment.

Fifth, ACA 11 would authorize the Legislature to appropriate funds from the CalCare Trust Fund by a statute passed by an act approved by a majority vote of the entire membership of each of the two houses of the Legislature.

Sixth, ACA 11 would specify that any revenues derived from the taxes imposed would not be considered General Fund revenues or proceeds for purposes of education funding.

Finally, ACA 11 would not become operative until the Legislature establishes in statute comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of every resident of the state, as well as an act passed by the Legislature that establishes in statute the administration, collection, and enforcement of the taxes imposed by this article.

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33 thoughts on “Constitutional Amendment Proposed to Enact Tax Increases for CA Single-Payer Health Care System

  1. Fascism cometh.

    Tax TAX and more massive taxes (it will only increase, someone has to pay for those who can’t or those who come in illegally)….they will determine what is best health for you – they are GOVT

    Time to LEAVE CA!
    They are preparing to own your health and determine what is best for you!

      1. All that will be left after the productive leave will be the math deficient and the government dependent…. Oh wait, I’m being repetitive. Already bought land in TN – will be gone before there is an exit tax too.
        Hilarious:
        “(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—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.”

        But we will still come back 5 months a year to sit on the beach and observe the mess.

      2. You poor, poor misguided person. You must support everything wicked and anti God such as abortion on demand at any and every stage of the pregnancy up to and including birth, same sex marriages, sex change surgery that destroys the person having it, physically , mentally and spiritually. You support evil!

    1. We are the last country in the developed world to not do this. We pay the most for healthcare. We have the worst outcomes. The evidence for what the right decision here is strongly opposed to your statements. Unless you can get us better results for half the cost with your ideas— we should move on to a system that will do just that.

    2. First— Fascism is a right-wing idiology. No on to the point. We are the last country in the developed world to not do this. We pay the most for healthcare. We have the worst outcomes. The evidence for what the right decision here is strongly opposed to your statements. Unless you can get us better results for half the cost with your ideas— we should move on to a system that will do just that.

  2. I wonder if this is why governor Newsom’s aunt Nancy recently bought herself a $25 million home in Florida, to escape the coming high taxes here in California. This is total madness.

  3. I am so mad at the stupid libs ruining California. How bad can it get here? I think it’s a losing battle. Conservatives are out numbered and the margin is growing with so many moving out of the state. I am considering it it as well. My home for 66 years and I am looking to relocate because it just too expensive to live here. Gas is the highest in the nation and everything cost so much. Inside I am crying and outside I am mad as hell. Tired of being punished with more taxes for my life successes. Just plain wronged and simple as that.

  4. Why are ILLEGALS being coddled and REWARDED??!! Round them up and deport them as should be done!! Why do LEGAL citizens have to pay for them???? Newsom STINKS!!!

  5. How are retirees impacted by these tax increases? Am I correct that they will not be subject to the payroll tax increases? Will employees be subject to the payroll tax as well, or just employers?

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