Today, Senator Tony Strickland (R–Huntington Beach) slammed Senate Democrats for passing what he described as massive tax increases in California. The majority party passed two tax bills, Senate Bill 122 and Senate Bill 125, that will impact every small-business owner who uses digital tools and increase costs for healthcare for families.
“The majority party has an addiction to spending. Despite record revenues, it has passed two large tax bills that will take money out of the pockets of hardworking families across California.
“Senate Bill 122 will affect every business that uses digital tools, hitting those mom-and-pop shops especially hard. Senate Bill 125 will add about $400 per year in costs for a family of four on a health plan.
“What happened to addressing the affordability crisis that was supposed to be such a priority? Senate Democrats talk a lot about it, yet their voting record tells a different story. These bills move us in the wrong direction, and these tax increases could be the final straw that drives businesses out of California and harms our economy.
“We should be fighting to keep businesses in our state. Instead, Senate Democrats’ efforts today will further drive jobs out of California and make it less affordable for businesses and families.”
The two tax bills are:
- Senate Bill 122 is a tax on phones, computers, and software used by businesses. It is projected to increase taxes by $1.4 billion in 2026–27, with tax revenues expected to rise further in subsequent years.
- Senate Bill 125 is the healthcare and medical treatment bill. It is a $1.5 billion annual hit on private health insurance through 2030, adding an extra $400 a year for a family of four on a health plan.