LOS ANGELES, CA – U.S. Senator Bernie Sanders will headline a campaign kickoff for the California Billionaire Tax Act on Wednesday, February 18 in Los Angeles.
Joined by frontline healthcare workers and other community and labor supporters, Sanders will address thousands of Californians as they rally in support of a one-time, emergency tax on billionaires to keep hospitals and ERs open and save the state’s healthcare system from collapse.
“At a time of unprecedented and growing wealth consolidation and income inequality, I strongly support the grassroots effort in California to impose this reasonable and necessary 5% wealth tax on about 200 California billionaires,” said U.S. Senator Bernie Sanders. “This initiative would provide the necessary funding to prevent over three million working class Californians from losing the healthcare they currently have — and would help prevent the closures of California hospitals and emergency rooms.
It should be common sense that the billionaires pay just slightly more so that entire communities can preserve access to life-saving medical care. Our country needs access to hospitals and emergency rooms, not more tax breaks for billionaires.”
“We are very grateful for the support of U.S. Senator Sanders who for years has been telling the truth about the threat that income inequality poses to our nation — and to working people. If we let these healthcare cuts stand, my patients will suffer. Hospitals and ERs will close, others will be strained by taking on more patients, and people will lose access to life-saving care,” said Mayra Castaneda, an Ultrasound Technologist at St. Francis Medical Center.
“This is all avoidable if billionaires just pay their fair share in California, so I’m going to do whatever is in my power to see this proposal pass in November. I’ll be telling my story alongside Senator Sanders and urging my fellow Californians to take action to save lives.”
In November, California voters will at last have a chance to make billionaires pay their fair share to help prevent that, through a commonsense ballot initiative that places a one-time 5% tax on the wealth of approximately 200 billionaires who reside in the Golden State. Ninety percent of that funding will go to offset Medi-Cal cuts in order to prevent ER and other service closures, and 10% will go toward funding food assistance and public education.
At the rally, local healthcare workers and union members will share their stories on the impending crisis facing California hospitals if we don’t act now to pass the California Billionaire Tax. From fears around patient safety due to department and hospital closures to rising healthcare premiums for all Californians, healthcare workers are preparing to take the stage, calling on attendees to rally, volunteer, and vote to hold billionaires accountable.
Sanders joins a growing list of unions, elected leaders, and community organizations supporting the tax on billionaires. Recently, the 250,000-member strong Teamsters California endorsed the measure. Dozens of endorsements are expected to be announced in the weeks ahead.
Measures such as the Massachusetts Fair Share Amendment and Washington State’s capital gains tax have generated billions in new revenue for public services, and the number of high-income residents AND their cumulative wealth in both states have increased since the policies went into effect.
In addition, tax experts have underscored that what makes the billionaire tax unique is how it’s designed to be fair and enforceable — so billionaires can’t avoid responsibility by moving their assets or claiming residency elsewhere.
Impact of federal healthcare cuts
Dozens of hospitals and ERs will close; dozens more will be forced to cut back services and lay off healthcare workers. The patient care crisis will worsen as patients are forced to wait longer and drive further for medical care.
Up to 3.4 million Californians could lose their healthcare coverage under Medicaid, including many seniors, children, veterans, and people with disabilities.
The state could lose about $30 billion in federal healthcare funding every year — destabilizing the healthcare system and driving up healthcare costs for everyone.
Insurance premiums for Californians who purchase Affordable Care Act plans could rise as much at 97%, and an estimated 400,000 Californians could be priced out of healthcare altogether.
Impact of food assistance cuts
Currently, 5.5 million Californians benefit from food aid. 3.5 million are senior citizens and children.
At least 754,000 people could lose their entire monthly benefit, with over 3 million households facing reductions.
The estimated funding loss is $2.5 to $4.5 billion annually.
The SNAP/Cal-Fresh cuts, if not backfilled by other funding mechanisms, are expected to cost California approximately 400,000 jobs over the next nine years.
About the California Billionaire Tax Act
The California Billionaire Tax Act proposes a modest tax on the wealth of the state’s ultra-high-net-worth individuals to safeguard Medi-Cal, protect hospitals and health care workers, expand food assistance programs, and support public education. The updated initiative reflects a comprehensive response to federal policies that simultaneously threaten health care, food security, school performance, and economic stability throughout California.