California approves largest tax hike in history heres where youll pay more

Californians will have to pay for two new taxes next year after Gov.Gavin Newsom approved the state budget June in what the California Taxpayers Association described as “the largest tax increase in state history.”Newsom and Democratic lawmakers agreed on proposals that would raise health insurance premiums and slap a new charge on software downloads in an effort to make up federal revenue loss from an antagonistic Trump administration, Democrats said.Republicans blasted the new taxes.“Record spending does not equate to better quality of life, and anyone living in California for the last decade would likely agree.

This budget is bad for job creators and workers,” said state Sen.Roger Niello (R).One measure would extend a tax on health care providers to potentially generate roughly $2 billion a year to help fund Medi-Cal.

Individuals with private health insurance plans could see their rates go up an average of about $100 a year, or $400 a year for a family of four, as insurers look to pass on the costs.State Republicans have sounded the alarm on the health care tax, even urging the Trump administration this week to intervene.The hike requires the approval of the Centers for Medicare and Medicaid Services, Republicans claimed.The other tax hike classifies “prewritten” software products as personal property subject to the state’s highest-in-the-nation sales tax.

The software tax is estimated to bring in $900 million annually, according to legislative analysis.California’s base sales tax rate is 7.25%, but local jurisdictions can impose additional taxes.Some areas like Lancaster and Palmdale charge total sales tax rates close to 12%.“Whether you get the product from the store or download it is all going to be subject to an additional roughly 10% tax, depending on what jurisdiction you are in the state of California,” longtime lobbyist Chris Micheli told ABC10.

The software charge applies to everyday digital products that businesses and people u...