Report: California lawmakers have pondered $190 billion in tax and fee hikes since returning to session | California

(The Center Square) — Since the state legislature resumed in January, California lawmakers have considered raising annual taxes and fees by more than $190 billion, according to a new report released Thursday by the California TaxFoundation. (Cal Tax).

the report from CalTax includes all pending tax and tariff laws introduced this year and 2021 proposals that have been implemented or remain active. In the report, CalTax notes that several tax increase proposals were considered by the Legislature in the first two months of 2022, as the state considers billions of dollars in reserves and surpluses.

“The tax and fee proposals were introduced despite state reserves of more than $34.6 billion, a windfall of windfall tax revenue (nearly $16 billion above forecast over the past seven first months of fiscal year 2021-22 alone) and a projected surplus of $45.7 billion,” the report said.

The most important tax measure pending in the legislature is Assembly Constitutional Amendment 11 – a proposal presented by Assembly Member Ash Kalra of finance single-payer health care in California.

Kalra’s Single Payer Health Care Bill, Assembly Bill 1400, died in January, but the funding mechanism for ACA 11 is still pending. CalTax estimates that ACA 11 would result in a nearly $163 billion tax increase by levying a gross receipts tax, a payroll tax for employers and employees, and an increase in personal income tax. earning over $149,500.

According to CalTax, ACA 11 could be placed on the ballot “in anticipation of the reintroduction of a single-payer implementation bill.”

The second most important tax measure currently pending before the legislature is Assembly Bill 2289which would require a ” wealth tax “ on high earners in California.

The bill would levy an annual tax of 1% on global net worth over $50 million and an annual tax of 1.5% for a resident whose global net worth exceeds $1 billion. The tax would apply to art, collectibles, real estate, pension funds, financial assets held offshore, agricultural assets, funds and stocks, according to CalTax.

If passed, AB 2289 is expected to cost taxpayers $22.3 billion.

Other proposals pending in the Legislature that would create new taxes include Assembly Bill 2802, which would impose a “carbon tax” on entities that emit greenhouse gases. It is estimated that this proposal could cost taxpayers $5 billion a year, the report notes.

A bill included in the report, Assembly Bill 1223, would have imposed a 10% excise tax on the sale price of handguns and an 11% tax on the sale of rifles. shoulder and ammunition, but died in the assembly. The Assembly Appropriations Committee estimated that it would have cost taxpayers $118 million.