California Democrats propose tax hikes on businesses and the wealthy to pay for statewide universal healthcare

California Democrats want to raise taxes on businesses and the wealthy to pay for universal healthcare in the state.
The plan has drawn opposition from Republicans, insurers and some doctors in the state. California Assemblyman Ash Kalra proposed a Constitutional amendment to pay for the plan.

Businesses that make at least $2 million in annual revenue would be subject to a 2.3% payroll tax, companies with at least 50 employees would be subject to a 1.25% tax, and employers who pay employees at least $49,900 would be subject to a 1% tax.

The proposal calls for a 2.5% tax on people earning more than $2.48 million per year and a 0.5% income tax on people earning at least $149,509 per year.
Kalra said that a single-payer healthcare system is the fiscally sound thing to do, the smarter healthcare policy to follow, and a moral imperative if we care about human life.
According to the LA Times report, the main piece of legislation to establish the system is Assembly Bill 1400, which would lead to "CalCare." The plan would allow California residents to have access to a variety of medical services.

The legislation seeks to bring providers closer to the actual cost of care and it also intends to lower prescription drug prices, according to the report. Long-term care for seniors and people with disabilities is included in the report.

According to the LA Times, the plan faced opposition from the California Medical Association and the California Hospital Association. According to the California Taxpayers Association, the system would increase tax collections in the state by $163 billion a year.
GOP Assemblyman Jordan Cunningham said that it was a shame that 40 million Californians could be forced into a healthcare system run by the same bureaucrats who couldn't figure out how to schedule appointments at the Department of Motor Vehicles.

The president of the California Taxpayers Association told the AP that the plan could lead to job losses and raise the cost of living in the state.
California Democrats have a super majority in the state legislature, but tax increases need to be approved by voters as part of an amendment to the state's constitution. The tax hikes would have to be approved by at least 1/3 of the legislature.

The bill to create the healthcare system must be passed by the Assembly by January 31 this year in order to have a change of passing in 2022, the AP reported.