At a rally in Los Angeles to drum up support for a proposed “billionaire tax” in California, U.S. Sen. Bernie Sanders gave a warning to his audience: Beware of deceptive messaging.
The Vermont independent, reports CalMatters’ Nigel Duara, said Wednesday that ads opposing the tax will not be as transparent as, “‘We are billionaires, we want it all, please vote down this referendum.’” Rather, they’ll threaten retribution.
- Sanders: “What they are saying is, ‘If you stand up to us, we are gonna punish you.’”
Some California billionaires have already limited their ties with the state, threatened to flee or said they may plan on doing so. They argue that the one-time, 5% proposed tax would hinder innovation and hurt the state since its budget has become increasingly reliant on tax revenue from tech companies. Their multimillion-dollar donations to lobbying groups and political action committees to fight the proposal have begun to pour in.
Policymakers of both parties have also slammed it: Gov. Gavin Newsom and San Francisco Mayor Daniel Lurie have publicly decried it, and U.S. Rep. Kevin Kiley, a California Republican, introduced a bill Wednesday that would ban states from levying a retroactive tax on former residents of the state.
But experts have pointed out that threats by the wealthy to leave the state are often overblown. Proponents say the tax could generate about $100 billion, which would help offset the roughly $30 billion California is anticipated to lose in federal Medicaid funds. These cuts were included in President Donald Trump’s spending bill that nixed nearly $1 trillion from Medicaid over a decade, in order to maintain tax cuts Trump made in 2017 that mostly benefit the wealthy.
- Dr. Jackline Lasola, an obstetrician, at Wednesday’s rally: “At a time when this administration is gutting our health care, our safety nets and our public services, we’re here to protect Californians. It’s time to tax the billionaires.”
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Other Stories You Should Know
Bill seeks to further protect student info
A bill to shore up loopholes of a landmark state law passed more than 10 years ago aims to further protect students’ personal information from tech companies, writes CalMatters’ Adam Echelman.
Assemblymember Dawn Addis’ bill, which is currently before the Senate, would strengthen a 2014 law that bans education technology companies from selling and disclosing students’ data. But the law applies to products that “primarily” serve K-12 schools and are marketed for students. Many tech companies have skirted the law by arguing their products aren’t primarily intended for students or designed for the classroom.
The measure by the San Luis Obispo Democrat would expand the number of education technology companies that are applicable to the state’s student privacy laws. It would also allow students and parents to sue companies for privacy violations.
The California Chamber of Commerce and TechNet, a trade association that represents tech companies, oppose the bill, arguing that it would stifle investment in tech learning tools.
Reynolds cruises to commission lead
A former lawyer for a self-driving car company will now lead the state regulatory body that oversees aspects of autonomous vehicle regulation, reports CalMatters’ Malena Carollo.
Gov. Newsom has appointed Commissioner John Reynolds as president of the California Public Utilities Commission. In a statement, Newsom said promoting Reynolds “underscores a renewed focus on cutting costs,” including lowering utility bills through oversight.
Reynolds will replace Alice Reynolds (no relation), who will be reassigned to the Board of Governors at the California Independent Systems Operator.
John Reynolds once served as managing counsel for Cruise, a driverless car company. He received criticism about his former position while serving at the CPUC in 2023. At the time, safety concerns surrounding autonomous vehicles prompted the International Brotherhood of Teamsters to call for Reynolds’ resignation and revoke Cruise’s autonomous vehicle permits.
Read more.
California Voices
CalMatters columnist Dan Walters: For years tech tycoons assumed they needn’t worry about state government, but changing attitudes have prompted Silicon Valley to do something it has never done before: Try to elect a tech-friendly governor.
Children who do not have access to vision care risk falling behind at school, but only 16% of school-age children on Medi-Cal receive basic eye care, write Dr. Brian Park and Ted Lempert, presidents of the California Optometric Association and Children Now, respectively.
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