Gov. Gavin Newsom loves to rattle off statistics — but he may not like a whopping new figure being tagged to him and California Democrats ahead of his likely presidential campaign.
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figure → love → campaign
Democratic lawmakers and Newsom have approved measures during the last two-year legislative session that will raise taxes and fees by an estimated $14.3 billion annually, according to a new California Tax Foundation report.
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that → approve → report
The increases come as Californians already pay the nation’s highest gasoline taxes, highest statewide base sales tax rate and highest top personal income tax rate.
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Californians → come → taxes
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Sign → sign → California
“When the new taxes and fees approved this session are fully implemented, Californians will be paying $14.3 billion more to their state and local governments, on top of any additional taxes approved in the November election,” California Tax Foundation research analyst Caitlin Herring said in a statement.
“These new expenses will increase the cost of living in this state just as a new governor takes office and begins grappling with California’s ongoing affordability problem.
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governor → approve → problem
A back-of-the-envelope calculation would suggest the taxes would be a roughly $1,000 annual increase per California household, but the tax foundation cautioned that most of the taxes target specific taxpayers and businesses.
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most → suggest → taxpayers
The foundation’s analysis identified 156 proposals to increase taxes or fees during the 2025-26 session.
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analysis → identify → session
Of those, 67 passed the Legislature and were signed into law by Newsom.
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67 → pass → Newsom
The approved increases represent a fraction of the more than $803 billion in proposals lawmakers considered, according to the report.
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lawmakers → approve → report
Newsom’s office did not immediately respond to a request for comment.
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office → respond → comment
Earlier this month, the California Medical Association and the California Association of Health Plans said a new state health care tax — expected to raise family premiums by hundreds of dollars annually — violates Proposition 35, a 2024 measure approved by 68% of voters that set limits on such taxes.
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that → say → taxes
The two largest increases came from proposals Newsom incorporated into the state’s 2026-27 budget, according to the foundation.
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Newsom → come → foundation
One measure, Senate Bill 122, extends taxation to sales of digital prewritten software regardless of how customers receive it.
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customers → extend → it
That includes Software-as-a-Service (SaaS), where the customer accesses the software hosted by the vendor but never takes possession of it.
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customer → include → it
The same legislation limits businesses’ use of tax credits, increasing the amount employers owe.
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employers → limit → amount
Together, the changes are projected to generate at least $9.17 billion annually, according to the report.
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changes → project → report
A second budget measure, Senate Bill 125, imposes a health plan tax that the foundation estimates at $2.3 billion annually.
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foundation → impose → billion
Combined, those two measures account for about $11.47 billion, or roughly 80% of the annual increases identified in the report.
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measures → combine → report
The foundation also tracked how much individual legislators supported higher taxes and fees through their votes.
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legislators → track → votes
Assemblymember Robert Garcia (D-San Bernardino) backed measures totaling $795 billion, the highest amount in the Assembly, while Sen. Lena Gonzalez (D-Long Beach) led the upper chamber at $790 billion, according to the analysis.
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Gonzalez → back → analysis