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Reason Foundation

California Legislators Propose $11 Billion In Higher Taxes And Fees

Sal Rodriguez
August 9, 2013, 9:00am

While refusing to take responsibility for over $100 billion in unfunded pension and retiree health care obligations, California legislators spent the current legislative session coming up with new ways to extract money from their constituents. According to recent research by the California Taxpayers Association (CalTax), California legislators have introduced approximately $11 billion in tax increases and new or higher fees.

CalTax identified 66 pieces of legislation that have been introduced this legislative session that would increase monetary burdens on Californians. Fortunately for taxpayers, only five tax and fee increases of the 66 proposed have been passed so far. The five increases amount to $355.6 million in additional burdens to taxpayers. The largest of these is SB 78, which “imposes a sales tax on gross receipts of a Medi-Cal managed care plan, as defined” in the statute. This one-time tax is estimated to cost taxpayers $340,000,000.

As a sampling of pending legislation:

The 66 pieces of legislation by CalTax does not include a group of proposed Constitutional Amendments proposed in the Senate and Assembly that would make it easier for local governments pass tax increases and/or bond measures. More on that in a previous blog post here.

Taken together with California’s already high income, sales, corporate, and property taxes, the extensive proposals to increase taxes and fees on Californians indicate that California legislators have yet to get a grip on reality. While legislators continue to ignore over $100 billion of debt, it insists on treating taxpayers like  ATM machines while maxing out the credit cards.



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