SECTION 1. (a) The following state taxes are imposed as follows, subject to being operative as provided in Section 4, for the purpose of funding comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of every resident of the state, and reserves deemed necessary to ensure payment:(1) An annual excise tax is hereby imposed upon a qualified business, as defined by the Legislature, for the privilege of doing business in this state at a rate of 2.3 percent of the gross receipts of that qualified business minus the first two million dollars ($2,000,000) in annual gross receipts of that business.
(2) (A) A payroll tax is hereby imposed on every employer who pays wages or other compensation to 50 or more resident employees for services performed either within or without this state at a rate of 1.25 percent of the aggregate amount of wages or other compensation paid by the employer to the resident employees.
(B) In addition to the payroll tax described in subparagraph (A), a payroll tax is hereby imposed on every employer who pays wages or other compensation to resident employees for services performed within or without this state at a rate of 1 percent of the aggregate amount of wages or other compensation paid by the employer to the resident employees in excess of forty-nine thousand nine hundred dollars ($49,900) per resident employee.
(C) The employer shall for each payroll period deduct and withhold from compensation paid to resident employees the amounts of tax imposed under subparagraph (B).
(3) (A) In addition to any other tax imposed under the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code), there is hereby imposed for each taxable year upon the entire taxable income of every resident of this state whose income is subject to tax under Section 17041 of the Revenue and Taxation Code, a State Personal Income CalCare Tax in the following amounts and at the following marginal rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:
For taxable income:......................The marginal tax is:
$149,509 but not over $299,508.......0.5% of the taxable income
$299,509 but not over $599,012.......1% of the taxable income
$599,013 but not over $1,299,499.....1.5% of the taxable income
$1,299,500 but not over $2,484,120..1.75% of the taxable income
$2,484,121 and above...................2.5% of the taxable income
Employers are already fleeing CA and this will just accelerate their exodus. This is a huge job killer.
of 2.3 percent of the gross receipts
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Groceries operate on ~1% profit margin. Now they will be on -1.3%?
Looks like this has to be paid even if the business is loosing money! Crazy!
And with restrictions on drugs given to combat COVID limiting therapeutics to “people of color” good luck getting treatment, even if you give all your money to these reprobates in Sacramento.