politicsconservative
California budget plan gets mixed reviews as new costs loom
Sacramento, California, USAWednesday, June 17, 2026
# **California Approves $356 Billion Budget—But Who Pays the Price?**
California lawmakers have just greenlit a **$356 billion spending plan**, now awaiting the governor’s final signature. To foot the bill, they’re rolling out **three new tax strategies** that could soon tighten wallets across the state.
### **Tax Hikes That Hit Home**
1. **Healthcare Tax Shift**
- A long-standing tax on healthcare providers, originally funding Medi-Cal, is set to expire.
- Instead of disappearing, lawmakers want to **redirect the cost to private insurers**, likely pushing **monthly premiums higher** for policyholders.
2. **Sales Tax on Your Favorite Software**
- Starting next year, expect to pay **sales tax on subscriptions** like Slack, Microsoft 365, and other digital tools.
- Business groups warn this could **slow tech innovation**, adding unnecessary burdens to growing companies.
- Crackdown on Tax Credits for Big Business
- A new cap on tax credits for large corporations may limit their ability to invest in expansion, potentially stifling job growth.
Who Feels the Pinch?
Assemblymember David Tangipa delivered a blunt warning: "If you earn a paycheck or run a small business, expect higher taxes. If you buy private health insurance, your bills could climb too."
The Backlash: Bad Timing or Necessary Trade-Off?
Critics argue the timing couldn’t be worse. California’s budget already faces unexpected shortfalls, and piling on more fees risks pushing residents—already grappling with sky-high living costs—into deeper financial strain.
Will This Move Help or Hurt?
The big question remains: Will these tax hikes generate enough revenue to stabilize the state’s finances, or will they just shift the burden onto everyday Californians? With the state’s reputation for expensive living, more fees could tip the scales toward unaffordable living for many.
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