California Democrats are clamoring to tax the wealthy — why their proposals could backfire

PROGRESSIVE CALIFORNIA DEMOCRATS, who have long fought and failed to raise taxes on the rich, are renewing their push this year in light of a specific threat: The seismic federal cuts to Medi-Cal, the state’s health care program for the poor.

President Donald Trump’s H.R.1, signed into law last July, is estimated to strip tens of billions a year in state Medi-Cal funding and cause 2 million low-income residents to lose coverage. It has prompted progressive lawmakers and health care advocates to call for higher taxes on corporations or billionaires to keep those at risk of losing benefits on the program.