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california assembly  - Taxes
Aca-11 (2021-2022)

An excise tax that would fund health care coverage, AB-1400 and cost control systems.

District 27 Assembly Member Ash Kalra - District 25 Assembly Member Alex Lee

Summary
  • The proposal would establish an excise tax, payroll tax, and state personal income tax to fund CalCare, universal single-payer health care coverage for California residents.
  • This measure would tax four groups:
    1. Tax on business with at least $2 million in gross receipts. The tax is on gross receipts rather than profit, and even with a loss, businesses would be required to pay the tax.
    2. Companies with 50 or more employees would have higher payroll taxes.
    3. Payroll tax increase on employees making $49,900 or more.
    4. Income tax increase on incomes over $149,509.
Status
  • History:​ 01/06/22 - From printer. May be heard in committee February 5.
  • Votes:​ 01/25/22 - No votes recorded as of this time.
Position
  • ​LASCC's Position: Oppose
  • The estimated additional taxes were originally $163 billion and now some of the proposers themselves have acknowledged that the cost could be as high as $200 billion with other economic experts believing it could be as high as upwards of $400 billion. The measure would authorize the Legislature, upon an economic analysis determining insufficient amounts to fund these purposes, to increase any or all of these tax rates by a statute passed by a mere majority vote of both houses of the Legislature rather than 2/3 vote. Employers will have a difficult time raising wages for employees, especially since some employers could be taxed on 3 out of 4 of the groups.

Read the bill. Click Here
8726 S. Sepulveda Blvd., Ste. D-2111 Los Ángeles CA 90045
Tel. (310) 308-4511 / Fax: (310) 216-1199
acorlin@peelian.com


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