California lawmakers approve health‑insurance tax hike amid budget shortfall
The California Assembly voted to extend and increase a tax on employer‑sponsored health insurance plans, generating an estimated $1.5 billion in revenue to offset cuts to the state’s Medicaid program and other safety‑net services. Lawmakers say the measure will help preserve federal funding and balance the state budget. Critics, including health‑care providers and some consumer groups, warn the tax could be passed on to workers as higher premiums, calling it a “rob Peter to pay Paul” approach. The package also includes a new sales tax on digital software, reflecting Governor Newsom’s broader effort to raise revenue without raising income taxes.
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