Proposed constitutional amendment to enact tax increases for CA’s single-payer health care system
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 coverage of paid health care unique and cost control. 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 put on the statewide ballot in November to enact significant tax increases to fund health care coverage and control costs.
ACA 11 is then expected to pass by a majority of the state’s electorate in November. If enacted, it would impose an excise tax, payroll taxes, and personal income tax to fund comprehensive and universal single-payer health care coverage, as well as a cost control system. health care. In addition, if passed by voters, ACA 11 would authorize the Legislative Assembly, based on an economic analysis determining insufficient amounts to fund these goals, to increase some or all of these tax rates. by a law adopted by a majority of the votes of the two chambers of the Legislative Assembly. .
Further, ACA 11 would establish the CalCare Trust Fund in the Public Treasury and deposit those tax revenues into that fund for the purpose of funding this health care coverage, cost control system and reserves, and would authorize Parliament to appropriate these funds. by a statute adopted by a majority of the votes of the members of the two chambers.
ACA 11 contains three conclusions and statements, including that “comprehensive health care coverage for every resident of California is a right”; Californians will benefit greatly from a comprehensive, single-payer, universal health care system; and, it is the intention of the legislature to adopt a statutory single-payer comprehensive health coverage program and health care cost control system for the benefit of every resident of the state before revenues tax are levied in accordance with this measure.
First, ACA 11 would add Article XIII B to exclude government credits Limit CalCare Trust Fund revenues collected to fund universal single-payer health care coverage and a system of health care cost control health for the benefit of each resident of the State, and the 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 in an effort to fund comprehensive single-payer universal health care coverage:
- An annual excise tax on a qualifying business, as defined by the legislature, for the privilege of doing business in that state at a rate of 2.3 percent of the gross receipts of that qualifying business less the first two million dollars dollars in annual gross receipts of that Company.
- A payroll tax of each employer who pays wages or other compensation to 50 or more resident employees for services rendered in or outside that state at a rate of 1.25% of the total amount of wages or other compensation paid by the employer to resident employees.
- A payroll tax of each employer who pays salaries or other compensation to resident employees for services rendered inside or outside that state at a rate of 1% of the total amount of wages or other compensation paid by the employer to resident employees exceeding $ 49,900 per resident employee.
- An additional tax for each tax year on the aggregate taxable income of each resident of that state in the following amounts (and adjusted for inflation each year based on the California Consumer Price Index) :
For taxable income:
The marginal tax is:
$ 149,509 but not more than $ 299,508
0.5% of taxable income
$ 299,509 but not more than $ 599,012
1% of taxable income
$ 599,013 but not more than $ 1,299,499
1.5% of taxable income
$ 1,299,500 but not more than $ 2,484,120
1.75% of taxable income
$ 2,484,121 and over
2.5% of taxable income
Third, the ACA 11 would allow the legislature, in a specific case, to pass legislation by majority to increase some or all of the tax rates imposed above.
Fourth, ACA 11 would require that all income from the tax rates imposed above be deposited into the CalCare Trust Fund for the sole purpose of funding comprehensive single-payer universal health coverage and a cost control system. health care for the benefit of every resident. of the State, and the reserves deemed necessary to ensure payment.
Fifth, ACA 11 would authorize the legislature to allocate funds from the CalCare Trust Fund by statute passed by statute approved by a majority vote of all members of each of the two houses of the legislature.
Sixth, ACA 11 would clarify that any income from imposed taxes would not be considered General Fund income or proceeds for the purpose of financing education.
Finally, ACA 11 would not become operational until the legislature established in law full universal single-payer health coverage and a health care cost control system for the benefit of every resident of the state. , as well as a law adopted by the legislature which establishes in law the administration, collection and enforcement of the taxes imposed by this article.