CA Republican Leaders’ Vote for Tax Increase Reflects Poorly on Entire Caucus

Thursday July 2, 2026, the Republican Minority Leader Heath Flora and Republican Caucus Chair Juan Alanis voted to pass a tax increase, even as numerous Democrat Assembly members did not.

When Republicans vote for tax increases, that alone is enough of a Republican platform violation. But when Republican leadership votes to pass increases, that represents the entire Republican Caucus.

Who needs the Democrats when Republican leadership votes to pass tax increases on the people?

The bill, Senate Bill 762 by Sen. Jesse Arreguin (D-Berkeley) and Sen. John Laird (R-Monterey), authorizes numerous cities and counties to impose a transactions and use tax that exceeds the 2% statutory limitation.

According to the California Taxpayers Association and the Howard Jarvis Taxpayers Association, “…The transactions and use tax is a regressive tax that has the most harmful impact on low-income residents because it makes it more expensive for these taxpayers to purchase everyday necessities. Inflation has increased the cost of most goods, which in turn increases the sales tax that is imposed as a percentage of the retail price. Adding to the cost of living with a sales tax increase would harm Californians and disproportionately impact the state’s most vulnerable residents. ”

Republicans voted to pass this?

They didn’t just vote for it, they provided cover for several Assembly Democrats who laid off of the bill because they didn’t want the tax increase vote on their record.

Such bipartisan hospitality.

But I’m guessing that the other 17 Republican caucus members didn’t have a vote in this decision. This in effect, is a sellout by the leadership of their caucus.

SB 762 required a 2/3 vote to pass, which meant it had to have 54 votes in the Assembly to pass to the Senate. As you can see in the vote above, Democrat Assembly members Bains, Boerner, Bryan, Calderon, Patel, Ransom and Schiavo did not vote, so the two Republican votes got the vote to 54.

There are several Assembly Democrats who are facing tough re-elections, including Assemblywomen Dr. Darshana R. Patel, and Pilar Schiavo, who now have been provided cover by Republican leaders Flora and Alanis.

The California Taxpayers Association and the Howard Jarvis Taxpayers Association continue explaining their opposition to SB 762:

“…Businesses engaged in manufacturing and research-and-development activities face a significant sales and use tax burden in California. Under existing law, when a business purchases manufacturing or R&D equipment, the purchase is subject to a one-time local sales tax of 1.25% plus any additional voter-approved transactions and use taxes. Taxing business inputs increases overall production costs for everyday goods produced in California. Authorizing various cities in the Bay Area to exceed the 2% transactions and use tax cap would increase the cost of doing business for critical industries and companies, including the biotech R&D company that is the city’s largest employer. “

“…Unlike the federal government, which receives an exemption for all state and local sales taxes, purchases made by municipal and state agencies are subject to state and local sales taxes. Increasing the local sales tax would increase costs for purchases made by cities and counties, public school districts, and universities operating in the city. “

“…In 1953, the Senate Committee on State and Local Taxation recommended that California adopt a uniform state and local sales tax with a rate cap. The committee reported that with a cap, the local sales tax would have a ‘minimum adverse’ impact on taxpayers. The committee noted the following principles to consider when adopting sales tax changes: “[Local sales and use taxes] may and frequently do place unduly heavy compliance costs upon retailers”; and “Local business taxes levied under various ordinances and at different rates may produce artificial and unfair discrimination between retailers in the jurisdictions.” The cap has served the state well and should not be circumvented.”

In 2017 another Republican voted for a tax increase – Senate Bill 1, the Road Repair and Accountability Act, which imposed a massive tax increase on auto fuel of an additional 12 cents per gallon on gas, an additional 20 cents per gallon on diesel fuel, and a significant increase in vehicle registration costs – all promised to be used for “transportation” projects.

The vote by Flora and Alanis took place July 2nd, just ahead of the Summer Recess until August 3rd. If you live in either of their districts, you may want to contact them and inquire why they voted to pass taxes.

Assembly Republican Leader Heath Flora represents Amador, Calaveras, Sacramento, San Joaquin, Stanislaus: Ripon District office: (209) 599-2112.

Assembly Republican Caucus Chair Juan Alanis represents Merced and Stanislaus: Modesto District office: (209) 521-2201.