Sacramento created California’s budget problem — billionaire tax won’t fix it
The proposed Billionaire Tax Act in California is seen as an inadequate response to the state's budget issues. Critics argue that California's financial problems stem from excessive spending rather than a lack of revenue. They suggest that systemic reforms, particularly in the Medi-Cal program, are necessary to address the state's fiscal challenges.
- ▪California's tax revenue has increased by 55 percent since 2019, but spending has risen by 68 percent.
- ▪The state's budget forecast predicts a $93 billion shortfall over the next four years, primarily due to Medi-Cal expenditures.
- ▪The proposed billionaire tax is projected to generate only $40 billion, insufficient to cover the anticipated federal spending reductions.
Opening excerpt (first ~120 words) tap to expand
Opinion Sacramento created California’s budget problem — billionaire tax won’t fix it By Joshua Rauh, Benjamin Jaros and John Doran Published May 31, 2026, 8:33 p.m. ET See more of our coverage in your search results. Add The California Post on Google Proponents of California’s proposed Billionaire Tax Act have a story to tell: President Donald Trump and the Washington Republicans cut health care, and so the “billionaire tax” is the necessary response. Then there’s the reality, which we describe in a new paper from the Hoover Institution. Our analysis looks at what Trump’s “One Big, Beautiful Bill” actually does to Medi-Cal, and whether the proposed first-in-the-nation wealth tax would address it.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at California Post.
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