“Canary in the coal mine” closures are harbinger of more to come — voters can pass billionaire tax in November to backfill cuts that threaten care
LOS ANGELES – Healthcare workers, patients, and community advocates are sounding the alarm as the Los Angeles County Department of Public Health announced the closure of seven clinics just last week in neighborhoods from the Antelope Valley to Torrance.
Now, only six public health clinics remain open in the county, and roughly 200 to 300 positions have been eliminated because of federal budget cuts authorized under the current administration.
According to Dr. Anish Mahajan, Chief Deputy Director of the Los Angeles County Department of Public Health, more fiscal trouble looms. He told the Los Angeles Times that Los Angeles County could lose $2.4 billion over the next several years due to the Trump administration’s so-called “big beautiful bill.” Without that funding, local clinics and hospitals will continue to be forced to reduce services, lay off staff, or close their doors forever.
Proponents of the California Billionaire Tax say this is exactly why voters must pass the billionaire tax — because if billionaires don’t pay to keep local hospitals, clinics, and ERs open, working families will. At the same time, as closures like these mount, patients will simply go without key preventative care, leading to higher costs for all, and unnecessary, avoidable, or earlier patient deaths.
“California is one of the wealthiest places on Earth, but our healthcare system is on the verge of collapse and working people and small businesses are being handed the bill in more ways than one,” said Suzanne Jimenez, Chief of Staff at SEIU United Healthcare Workers West (SEIU-UHW), lead sponsor of the ballot measure.
“I’m collecting signatures because if we don’t get the billionaire tax on the ballot, more and more clinics will close,” said Diego Rubalcava-Alvarez, volunteer for the Billionaire Tax Act campaign. “Washington gave billionaires a tax break and paid for it by stripping healthcare away from millions of Californians. The only statewide solution I am aware of is passing the billionaire tax.”
Those backing the California Billionaire Tax have warned of massive federal healthcare cuts pushing key parts of the California healthcare system to the brink of collapse, or worse. Local hospitals and emergency rooms will shut their doors forever because billionaires insist on paying lower tax rates than working families. The ballot proposal’s coalition and its endorsers are backing the initiative in order to save the state from these dire consequences — and to ensure billionaires begin to pay closer to their fair share.
“Our hospitals and clinics are being pushed to the brink, and the closure of these clinics that provide essential services will make the patient care crisis even worse for local families,” said Andres Gonzalez, a frontline healthcare worker and Maywood, CA resident. “When federal leaders choose tax breaks for billionaires over keeping our hospitals and ERs open, working families pay the price. That’s why we’re urging voters to support the billionaire tax — so families don’t have to drive twice as far, and wait twice as long, for urgently needed medical care.”
As federal healthcare cuts from HR1 begin to rip healthcare away from millions of Californians, a growing list of lawmakers and organizations are supporting a one-time 5% emergency tax on the state’s roughly 200 billionaires in direct response to the massive cuts. The commonsense measure is designed to ensure that billionaires pay their fair share to stabilize and protect the state’s vast healthcare system, including hospitals, nursing homes, community health centers, and home care services.
Supporters of the Billionaire Tax note how successful other wealth taxes have been in states across the country. 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 after the now-passed January 1, 2026 deadline for residency changes.
The Billionaire Tax ballot measure will give Californians the opportunity to vote “yes” to save their healthcare, with 90% of funds raised going toward stabilizing the state’s healthcare system and protecting healthcare for all Californians, and 10% funding food aid and supporting K-14 public education.
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 health care system and driving up health care costs for everyone.
- Insurance premiums for Californians who purchase Affordable Care Act plans could rise as much as 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 one-time emergency tax on the wealth of the state’s ultra-high-net-worth individuals to safeguard Medi-Cal, keep hospitals and emergency rooms open, expand food assistance, and support public education. The initiative is a direct response to federal healthcare cuts under HR1 that threaten healthcare access and economic stability for millions of Californians.
| Paid for by Save California Health Care and Public Education, Sponsored by Service Employees International Union – United Healthcare Workers West. Committee’s Top Funder Service Employees International Union – United Healthcare Workers West |
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