During the first two months of 2022, state lawmakers considered raising annual taxes and fees by more than $190 billion, the California Tax Foundation reported March 10.
“The tax and fee proposals were introduced despite the state’s reserves of more than $34.6 billion, a windfall of unexpected tax revenue (nearly $16 billion above projections during the first seven months of the 2021‑22 fiscal year alone), and a projected surplus of $45.7 billion,” the report notes.
The foundation’s Tax and Fee Report tallies 39 proposals with higher taxes or fees. Although the cost to taxpayers cannot be quantified for 31 of the measures, the remaining eight represent a cumulative total of $190 billion in additional taxes and fees if all were approved.
Shortly after the report was finalized, another $4 billion tax increase was introduced – a capital gains tax proposed by Assembly Member Chris Ward via amendments to AB 1771.
The largest tax measure under consideration is ACA 11 (Kalra), which includes an estimated $162.8 billion in tax hikes, including a gross receipts tax on businesses, payroll taxes on California employers and employees, and a personal income tax increase on individuals with income above $149,509. The measure, intended to partially fund a government-run “single-payer” healthcare program in California, has not been brought to a vote but could be pursued if the author decides to try to place the tax measure on the ballot in anticipation of the reintroduction of a single-payer implementation bill.
Another major tax increase is included in AB 2289/ACA 8, a package that would impose a $22.3 billion “wealth tax” on California residents and former residents.
The Tax and Fee Report is a regular publication of the California Tax Foundation, updated throughout the year to reflect new legislative proposals. The report includes any measure estimated to cost $1 million or more per year in higher taxes or fees. The report does not include legislation imposing fines, penalties, and other costs for violating state or local laws.