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What is the California Billionaire Tax Act? Is it actually happening?

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What is the California Billionaire Tax Act? Is it actually happening?


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A major labor union is working to put a new wealth tax proposal in front of Californians in November. But the proposal would only actually impact a small few — billionaires.

The California Billionaire Tax Act is a one-time tax that, if realized, would unlock revenue from the wealthiest in the state to support a health care system that some elected officials and leaders have warned faces major strain due to federal funding cuts.

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The statewide proposal, led by Service Employees International Union-United Healthcare Workers West, has been in the works for some time. Attorney General Rob Bonta issued the official title and summary for the tax act at the end of December, paving the way for proponents to collect the tens of thousands of signatures they’ll need to get this proposal on the ballot in November.

Vermont Sen. Bernie Sanders joined the proposal’s campaign kickoff in Los Angeles on Wednesday, Feb. 18, tossing out numerous figures that illustrated wealth disparities in the United States and likening billionaires having to pay a few billion dollars more in taxes as “pocket change.”

His clear support comes as Gov. Gavin Newsom has opposed it and as the proposal has generated fears it’d force California’s wealthiest residents to flee. Rep. Kevin Kiley of California’s 3rd Congressional District is set to introduce a bill fighting the tax proposal, saying it’s making California’s “leading job creators” leave preemptively.

Meanwhile, Los Angeles County leaders have turned to a proposed temporary sales tax increase to offset health care funding cuts. In June, county voters will decide whether to back it.

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Here’s what to know about the California Billionaire Tax Act.

Who is taxed under the California Billionaire Tax Act?

Californians with a net worth of $1 billion or more and certain trusts would see a one-time 5% tax, according to a filing for the proposal. Proponents said this tax will apply to about 200 people in California.

How is health care changing for Californians under Trump?

President Donald Trump’s “One Big Beautiful Bill Act” implements changes in eligibility for both Medi-Cal, the state’s Medicaid program, and CalFresh, the state’s Supplemental Nutrition Assistance Program.

The changing work requirements, paired with “administrative burden,” could leave one to two million people without Medi-Cal, according to the nonpartisan Legislative Analyst’s Office. By 2028, up to three million people could lose Medi-Cal, both due to OBBA and changes made in California’s budget, Miranda Dietz, director of the Health Care Program at UC Berkley Labor Center, told California lawmakers in February.

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Dietz, citing a previous look at the impact of OBBA, said that a projected $20 billion decrease in federal funding would mean 200,000 fewer jobs in the state, nearly two-thirds of which are “directly” in health care.

Also at risk: Hospitals will face lower margins due to fewer Medi-Cal enrollees and more uninsured patients, according to Jason Constantouros of the LAO, citing recent studies. Public hospital systems face $3.4 billion a year in federal funding cuts, the California State Association of Counties said in a report estimating the costs of OBBA.

What does this wealth tax in California do?

The revenue would be used to respond to “urgent, existing health care, education, and nutrition needs,” according to a filing for the initiative. Ninety percent of the revenue this tax generates would go to the Billionaire Tax Health Account, while 10% would go to the Billionaire Tax Education and Food Assistance Account.

Where would the money from the California Billionaire Tax Act go?

It’s supposed to create revenue to fund health care, education, and food assistance through a one-time tax.

Among what the money that goes into the Billionaire Tax Health Account could be used for, according to a filing, include:

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  • Spending to restore or address funding cuts or reductions
  • Investments to protect or enhance Medi-Cal
  • Prevention or mitigation of facility closures
  • Other investments to support health care access, coverage and more

The money that goes into the Billionaire Tax Education and Food Assistance Account could be used for:

  • Spending related to education and food assistance to restore or address funding cuts or reductions
  • To make investments in the public education system or further investments in CalFresh, CalFAP, CalFood, or California’s Universal Meals Program

When would this wealth tax occur?

The tax would be due in 2027, although taxpayers could opt to spread the payments out over five years at a higher cost, according to the LAO.

The LAO said the wealth tax would “probably” collect tens of billions of dollars, but it’s hard to determine the exact figure. One reason is that it’s “hard to know what actions billionaires would take to reduce the amount of tax they pay.”

Paris Barraza is a reporter covering Los Angeles and Southern California for the USA TODAY Network. Reach her at pbarraza@usatodayco.com.



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Big Boy: World’s largest locomotive embarks on California tour

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Big Boy: World’s largest locomotive embarks on California tour


(KTXL) — Northern California residents will have an opportunity to see the world’s largest steam locomotive when Union Pacific’s “Big Boy” makes numerous stops in the state over the next several days.

Big Boy No. 4014 is in the middle of a coast-to-coast tour that will take the train from California to Pennsylvania in celebration of the 250th anniversary of the United States. The train began the journey last month in Cheyenne, Wyoming, the locomotive’s home base, and arrived in Portola, California on Wednesday.

After stops in Oroville, Marysville and Lincoln Thursday, Big Boy will arrive for a multi-day stay in Roseville, California.

“We’re proud to welcome the Big Boy back to Roseville, a city that owes its founding more than a century ago to the railroad,” Roseville Mayor Krista Bernasconi said in a news release. “Big Boy’s return isn’t just a nod to our past; it brings visitors from across the region to explore the shopping, dining, events and attractions that make Roseville such a vibrant place to be.”

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The train will be on public display at 375 Atlantic Street in Roseville for two days: 1-5 p.m. on April 10 and 9 a.m. to 3 p.m. on April 11.

While in the Golden State, the train will also make brief “whistle-stops” in several other area towns:

  • Oroville, April 9, 2-2:30 p.m., 2181 High Street
  • Marysville, April 9, 3:30-3:45 p.m., 7th Street Crossing
  • Lincoln, April 9, 4:30-4:45 p.m., 7th Street Crossing
  • Colfax, April 12, noon-12:45 p.m., Amtrak Depot, 99 Railroad Street
  • Truckee, April 12, 4:45-5 p.m., 10065 Donner Pass Road

Admission is free, though Union Pacific warns that guests should always stay 25 feet back from the tracks and never climb on the locomotive.

U.S. Labor Secretary Lori Chavez-DeRemer, former Oregon congresswoman who now serves in President Donald Trump’s administration, will be in town to celebrate the visit. The cabinet member plans to talk with the Big Boy’s “steam team” and learn more about the locomotive, officials said.

Union Pacific’s No. 4014 Big Boy makes a stop in Hempstead, Texas, on Oct. 4, 2024. (Jason Fochtman/Houston Chronicle via Getty Images)

Big Boy No. 4014 was one of 25 locomotives commissioned for Union Pacific Railroad beginning in 1941. According to the company, they were built to haul heavy equipment during World War II between Ogden, Utah and Cheyenne, Wyoming.

The locomotives are 133 feet long and weigh 1.2 million pounds. They are “hinged,” which helps the huge trains navigate curves.

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The Big Boys were eventually decommissioned, including the retirement of No. 4014 in December 1961 after traveling more than a million miles, according to Union Pacific.

But in 2013, the company reacquired the locomotive from a museum in Pomona, California. And in May 2019, Big Boy No. 4014 was returned to service, celebrating the 150th anniversary of the completion of the Transcontinental Railroad.



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California Candidate Offers Donors Money-Back Guarantee

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California Candidate Offers Donors Money-Back Guarantee


Matt Mahan wants money to burn.
Photo: Casey Flanigan/Sipa USA/AP Photo

Finding new ways to raise money for political campaigns is a big cottage industry, particularly in California with its 14 expensive media markets. Now a novel wrinkle is being deployed by gubernatorial candidate and San Jose mayor Matt Mahan, as the New York Times explains:

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Two months ago, Silicon Valley could not have been more agog about Matt Mahan, the moderate Democrat who had just entered the California governor’s race as a tech industry ally opposed to a billionaires’ tax …

Mr. Mahan quickly raised millions, including contributions from Sergey Brin, the Google co-founder. But he has struggled to gain traction among voters. Now, with the June primary fast approaching, Mr. Mahan’s supporters have concocted a rather unusual campaign-finance strategy.

The pitch: Help us raise $35 million by April 17, and you’ll get your money back if we fall short.

No, donors aren’t being promised a win or a refund. But they will get their money back if Mahan doesn’t raise enough money to become viable in the home stretch before mail ballots start being cast in early May (the end of the all-by-mail primary is June 3, the date by which those ballots must be postmarked). The conditional nature of these donations, moreover, means they will be anonymous until such time as Team Mahan hits the target and the money is transferred into an official campaign account. It provides a nice hedging device for big-money folk nervous about the fragile shape of the ten-candidate field that is vying for two general-election slots. And the cup-rattling is off to a pretty good start, says the Times:

The campaign is organized by David Crane, an influential California political fixer whose advocacy group, Govern for California, is popular among tech executives. Mr. Crane has told people in recent days that the group’s “escrow” account has $13.5 million so far with $5 million more in the pipeline, according to communications The Times reviewed. Donors pitching it include Michael Moritz, a billionaire venture capitalist and one of Mr. Mahan’s biggest supporters, and Blake Byers, a tech executive and investor.

Mahan’s money hustlers are his campaign’s strength and also one of his weaknesses. California progressives are intensely suspicious of the Silicon Valley bros who have been moving rapidly to the right in the last few years. Some have joined hands with Donald Trump and others have gravitated to “Abundance” Democrats, like Mahan, who have little tolerance for his party’s interest-and-constituency-group “base” and its policy preferences. If Mahan’s campaign did take off, it might stimulate a consolidation of support behind one of the more progressive candidates (probably Eric Swalwell, Katie Porter, or Tom Steyer). That’s particularly true now that Trump’s endorsement of Republican Steve Hilton has likely limited the number of Democratic participants in the general election to one.

For the moment, any Mahan surge is hypothetical. His late entry into the race at the end of January means he wasn’t even being included in early polls. The one public poll where he does appear, a March 15 survey from Berkeley IGS, showed him tied for seventh place at 4 percent. Yes, he needs money to catch up, but he also needs a compelling message that goes beyond “lefties hate me!” Said lefties would undoubtedly shrug and support Mahan if he is in a general election with Hilton. But they have plenty of other options — at least one of whom, Steyer, has more money to burn than Mahan can ever raise — before it comes to that.

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Attorney disputes federal claims after ICE shooting in California; family seeks medical update

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Attorney disputes federal claims after ICE shooting in California; family seeks medical update


The attorney for the man shot by U.S. Immigration and Customs Enforcement agents in Patterson is disputing federal claims and raising questions about what led up to the shooting, and what’s happening now at the hospital.

Carlos Ivan Mendoza Hernandez’s fiancée and attorney say they still don’t know his condition and are struggling to get basic information from authorities.

They’re also disputing ICE’s version of events and point to court documents that they say tell a very different story.

“I have a lot of concern right now about getting info, finding out how is he doing, is he alive, is he recovering and what is his situation,” said Patrick Kolasinski, Hernandez’s attorney.

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Dashcam video captured the moments Tuesday morning when Hernandez tried to pull away from agents who were attempting to arrest him as ICE said he is wanted for questioning in El Salvador in connection with a murder. Kolasinski speculated that his reaction may have been driven by fear.

“I wasn’t with him, I can only imagine if you see what’s happening in immigration detention and find yourself about to be detained,” Kolasinski said. “It’s normal to try and flee.”

ICE claims Hernandez is a member of the 18th Street gang and is wanted in El Salvador. But his attorney says none of that is true. 

“Carlos is a family man who was on his way to work when he was detained by ICE. He has had no criminal contacts in the United States,” Kolasinski said.

Court documents from 2019 show Hernandez was charged with aggravated homicide, which was later reduced to simple homicide. The court documents also shows Hernandez was found not guilty.

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“He was, in fact, acquitted, so he cannot possibly have a warrant out for his arrest,” Kolasinski said.

CBS Sacramento reached out to ICE regarding the court document from El Salvador, but has yet to hear back.

“I think the problem is the training,” Kolasinski said. “You have a not dangerous person and when they try to flee. First of all, the car was way too far behind. When you do a traffic stop, you pull up close behind. If you’ve ever gotten a ticket, you’ll see CHP is on your bumper. Why? So this can’t happen.”

Hernandez’s attorney and his fiancée both say they’re now struggling to get basic information.

“Sheriff’s office, no one, no one responded to me, being searching for answers,” said Cindy, Hernandez’s fiancée.

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Cindy said she didn’t hear from the authorities first, but from her sister. After arriving at the hospital, she said an FBI agent took her into a room.

“He said, ‘I’m going to record you because I need to have this recorded, right?’ So I was expecting him to talk to me about Carlos. I literally asked how he’s doing, is he’s in the hospital. He said, ‘I cannot share any information. I’m not authorized.’”

CBS Sacramento reached out to the FBI and is awaiting a response. 

As they wait for answers, she said this goes beyond just one case.

“Right now it’s me and that’s the reason I’m here. I’m also representing our community,” Cindy said. “I don’t want this situation to continue and continue blaming these people, in this case, Carlos.”

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Right now, his family and his attorney say they’re still attempting to find out his condition. 

Kolasinski said Wednesday evening that Hernandez is detained under the U.S. attorney’s office. Kolasinski added that Hernandez underwent a medical procedure, but the family doesn’t know his condition. 



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