Hold on to your wallet—or quickly move out of State. This is what happens when you have a UniParty in charge of California. Oh, and this does not include $800 billion for reparations.
“The foundation’s Tax and Fee Report tallies 85 proposals with higher taxes or fees. The potential cost to taxpayers can be quantified for 33 of the measures, for a cumulative total of $203.7 billion a year in additional taxes and fees if all were approved.
“The state budget signed by Governor Gavin Newsom in June proposes total spending of $310.8 billion in 2023-24. In July, the Department of Finance projected general fund operating deficits – the shortfall projected if no changes are made to spending or revenue – of approximately $15 billion to $18 billion per year during the next three years,” the report notes. “The deficit could increase the likelihood that lawmakers propose more taxes and fees.”
More Than $203.7 Billion a Year in Higher Taxes and Fees
Under Consideration by Lawmakers
California Tax Foundation, 8/16/23 caltax.org
SACRAMENTO – Lawmakers have proposed increasing taxes and fees more than $203.7 billion a year since the beginning of the 2023-24 legislative session, the California Tax Foundation reported today.
The foundation’s Tax and Fee Report tallies 85 proposals with higher taxes or fees. The potential cost to taxpayers can be quantified for 33 of the measures, for a cumulative total of $203.7 billion a year in additional taxes and fees if all were approved.
“The state budget signed by Governor Gavin Newsom in June proposes total spending of $310.8 billion in 2023-24. In July, the Department of Finance projected general fund operating deficits – the shortfall projected if no changes are made to spending or revenue – of approximately $15 billion to $18 billion per year during the next three years,” the report notes. “The deficit could increase the likelihood that lawmakers propose more taxes and fees.”
The largest proposed tax increase is AB 1690 (Kalra), which expresses the intent to create a government-run health care program estimated to require at least $162.8 billion in tax increases. The second-largest tax increase, contained in AB 259 and ACA 3 (Lee), would impose a $22.3 billion “wealth tax” in California. AB 119 (Assembly Budget Committee), extending a tax on managed care organizations – approved by the Legislature and signed by the governor – is estimated to increase taxes by $8.2 billion. Rounding out the top four, SB 220 (Senate Budget and Fiscal Review Committee) proposes tax changes including a corporate tax rate increase estimated to cost taxpayers $7.2 billion in 2023-24 and $6 billion per year in subsequent years. Under the proposal, California would have the highest corporate tax rate in the nation.
The Tax and Fee Report is a regular publication of the California Tax Foundation, updated throughout the year to reflect new legislative proposals. The report includes any measure estimated to cost $1 million or more per year in higher taxes or fees.
The California Tax Foundation, a nonprofit organization founded in 1980, improves public policy through independent, nonpartisan research.
