Oppose ACA 11 Which Will Authorize the Largest Tax Increases in History

The Valley Industry and Commerce Association (VICA) opposes Assembly Constitutional Amendment 11 (Kalra), which is an effort to add an excise tax, payroll tax increase, and a State Personal Income CalCare tax increase to fund a universal single-payer health care program for California residents. 

California has some of the highest tax rates in the country, with much of it going towards funding and subsidizing healthcare providers. Over the years, VICA has opposed legislation to increase taxes that do not benefit individuals or businesses or the communities they serve, and this tax increase is an unnecessary resolution when considering the toll COVID-19 has taken on the economy.   
 
ACA 11’s shortcomings are only further shown by the fact that California is already seeing record levels of tax revenue. This has created a state budget surplus during the ongoing COVID-19 pandemic. Rather than increasing taxes to create a statewide single-payer healthcare system, California’s new budget surplus should be used to bolster current healthcare funding. 
 
If ACA 11 passes, it would increase taxes by $12,250.00 per household which would nearly double California’s current tax collection rate. The tax increases are detrimental to employers and individuals alike that will lead to mass exodus of doctors, health practitioners, Californians, and businesses to states with less taxes and/or traditional health systems.  
 
These tax increases would amount to an estimated $163 billion revenue increase per year, at the expense of all Californians and companies that do business in the state. The passing of ACA-11 will hurt California’s economy and workforce by discouraging companies to grow while some may relocate to states with less restrictions. As a result, potential changes to the health care system will further displace workers and eliminate jobs here in California. 
 
VICA sees ACA 11 as permanently damaging to California’s economy and way of life. As we continue to face the economic repercussions of the COVID-19 pandemic, it is imperative to oppose ACA-11, which will shrink California’s business environment and price out its residents.