California Democrats Back 5% Billionaire Tax for Medi-Cal as 1.6 Million Risk Losing Coverage
Updated
Updated · Forbes · Aug 20
California Democrats Back 5% Billionaire Tax for Medi-Cal as 1.6 Million Risk Losing Coverage
3 articles · Updated · Forbes · Aug 20
Summary
California Democrats endorsed Proposition 40, a November ballot measure that would impose a one-time tax of up to 5% on roughly 200 billionaires, with 90% of proceeds earmarked for healthcare.
The measure is meant to help plug a $30 billion Medi-Cal funding hole, and its backers warn as many as 1.6 million Californians could lose coverage if the gap is not filled.
Sergey Brin-backed opposition group Building a Better California has raised more than $118 million, including over $100 million from Brin, and steered more than $50 million each to rival Propositions 41 and 42 designed to undercut Prop 40.
Supporters say Prop 42 is mislabeled as retirement protection because Prop 40 already excludes qualified retirement accounts, while critics of the billionaire tax argue the wealthy earned their fortunes or could leave the state.
The endorsement sets up November as a test of billionaire political influence in California after the party sided with Prop 40 despite objections from Governor Gavin Newsom and the party's endorsed gubernatorial candidate.