Tom Steyer believes that increasing taxes can solve all problems, according to Jon Coupal.

Billionaire entrepreneur and gubernatorial candidate Tom Steyer has recently positioned himself at the forefront of California’s political landscape, advocating for various progressive reforms that have sparked both interest and skepticism. In a recent opinion piece, Steyer outlined his vision of implementing a single-payer healthcare system, lowering energy costs, and constructing one million homes. However, questions remain about the feasibility of his proposals and how they would be financed.

Steyer’s commitment to single-payer healthcare is backed by endorsements from prominent advocates such as Congressman Ro Khanna and Assemblyman Ash Kalra. Kalra has made several attempts to introduce a “Guaranteed Health Care for All” proposal in the state Assembly, which has previously encountered legislative hurdles. Notably, Assembly Bill 1400 reached the Assembly floor in 2021, with the state’s Appropriations Committee estimating the cost at approximately 6.5 billion based on 2021 figures—outpacing Governor Gavin Newsom’s proposed budget of 9.4 billion, which would be the largest in California’s history.

To fund this ambitious healthcare initiative, Steyer suggests taxing corporations and wealthy individuals. He aims to eliminate the “Water’s Edge Election” for corporations, enabling California to tax firms based on their global profits rather than just those generated within state lines. Critics argue that this approach could deter business investment and operations within the state.

In addition to healthcare, Steyer is focused on reducing energy costs by proposing a tax on oil companies’ “windfall profits” and imposing taxes on private jet fuel. While the idea of a windfall profits tax is not new, California has already enacted an excessive profits penalty on oil companies, which is set to be implemented in 2030. Observers note that California refiners operate on narrow profit margins, complicating the pursuit of additional taxation in this area.

Steyer’s housing initiative, aimed at building one million homes, would be financed through raising taxes on commercial properties by separating them from Proposition 13. He criticizes the current framework, arguing that it allows commercial property owners to evade appropriate taxation. However, experts highlight that Proposition 13 was originally designed to protect homeowners, with its provisions for property tax reassessment being tailored by the Legislature shortly after its passage.

Historical context is important, as a competing measure, Proposition 8, was rejected by voters, suggesting that there remains substantial public support for the property tax framework established by Proposition 13. Voters reaffirmed this sentiment in 2020 when they defeated Proposition 15, which proposed a split-roll property tax.

In summary, Tom Steyer’s gubernatorial campaign is marked by ambitious proposals that promise significant changes for California residents. As the election approaches, the critical questions surrounding the funding and implementation of these initiatives will continue to be central to the discourse among voters and policymakers alike. The complexity of these issues highlights the broader debate on taxation, healthcare, and housing in the state.

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