California Democrats Revive Universal Healthcare Bill
California Democrats Revive Universal Healthcare Bill
SACRAMENTO, Calif. (AP) — What could be the nation's first universal health care system found new life on Thursday after California Democrats proposed steep tax hikes to pay for it, prompting strong opposition from insurers, doctors and Republicans at the start of an election year.
Progressives in California's Democratic-dominated state Legislature have long called for a universal health care system to replace the one that mostly relies on private insurance companies. But their plans have often stalled over questions about how to pay for it in a state with nearly 40 million residents.
Assemblyman Ash Kalra proposed an amendment to the state Constitution that would impose an annual tax of 2.3% on businesses that have at least $2 million in annual revenue, plus a 1.25% tax on payroll for companies with at least 50 employees and a 1% tax for those employers who pay employees at least $49,900.
The plan also includes a series of tax hikes on wealthier people, starting with a 0.5% levy on the income of people who make at least $149,509 per year and ending at a 2.5% income tax for people who make more than $2.48 million per year. The California Taxpayers Association, which opposes the bill, says the plan would increase tax collections by $163 billion per year.
The tax increases have a long way to go before they could become law. First, at least two-thirds of the state Legislature would have to approve them. Then voters would have to OK them in a statewide referendum, possibly this November.
But introducing the tax increases cleared the way for state lawmakers to begin moving a separate bill that would create a universal health care system and set its rules. Democratic leaders scheduled a hearing on that bill next week. And Assemblyman Jim Wood, the influential chair of the Assembly Health Committee, announced he would vote for it — a good sign the bill will make it to the Assembly floor.
Kalra said California, where Democrats dominate state government, "can show the rest of the country how to take care of one another."
"Will it be easy? Of course not. There is a reason this has been tried and failed many times before," Kalra said. "The status quo is powerful and those who benefit from it are extraordinarily wealthy and influential. But we are not here to represent the upholders of the status quo. We are here to represent those who are suffering."
Democrats hold all statewide offices in California and have a super majority in the state Legislature, meaning they can pass anything they want without Republican votes. But to pay for this universal health care system, Democrats will have to convince voters to approve the tax increases. Republicans argued that won't be easy given the state's existing problems.
"It's a shame that somebody's bad political calculus could force 40 million Californians into a healthcare system run by the same bureaucrats who can't figure out how to schedule appointments at the DMV or get unemployment checks issued," said GOP Assemblyman Jordan Cunningham of San Luis Obispo County.
The bill that would create the universal health care system faces a tight deadline. It must pass the state Assembly by Jan. 31 to have a chance at passing this year. The deadline for the other bill — the one that would pay for everything — is months away.
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