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Politico
6 days ago
- Business
- Politico
Clock ticks on progressives' tax push
Presented by MONEY MAKER — This year in the California Legislature, tax season falls in June. Progressive Democrats racing against a looming deadline to approve the state budget are pressing to hike taxes on large corporations to address California's $12 billion budget shortfall while minimizing cuts. But they haven't agreed on how to do it and are running out of time. Rank-and-file Democrats in the Assembly and Senate are floating an array of proposals, from targeting offshore tax havens to penalizing companies that employ large shares of Medi-Cal recipients, according to interviews with more than a dozen lawmakers. 'We know that if we're going to mitigate these budget cuts, that we really have to have a solution,' said Assemblymember Sade Elhawary, a first-term lawmaker from Los Angeles. Still, Senate Pro Tem Mike McGuire and Assembly Speaker Robert Rivas have given no public indication of support as they grind through budget negotiations, though some of the lawmakers said Senate leaders are further along in their deliberations. The lack of consensus — and a fast-approaching June 12 deadline for the Legislature to get a joint budget proposal into print — have imperiled attempts to raise revenue and limit cuts. Even if a two-house deal is struck, legislators would need buy-in from Gov. Gavin Newsom, who has swatted down Senate-backed tax hikes during his tenure, even if he did agree to suspend some corporate tax breaks last year. Nevertheless, progressives see a need, if not an opportunity, to pursue tax hikes on big businesses as the state faces projected shortfalls each year through 2029 and as Republicans in Congress mull major spending cuts to Medicaid and other programs. Related: 'Lawmakers consider new corporate taxes to stave off Medi-Cal cuts' (POLITICO Pro) Assembly Democrats met behind closed doors Tuesday and discussed raising taxes for 'water's-edge' filers — multinational companies that do business in California — according to one lawmaker who was at the meeting. They also talked about placing higher taxes on people's second and third homes. Senators in recent days have pushed to make corporations pay more, perhaps by penalizing businesses that have large numbers of employees with low enough incomes to qualify for Medi-Cal — a proposal that moderates stopped back in 2013. But tax issues didn't come up Tuesday during a Senate Democratic Caucus meeting, said an attendee. SEIU California has floated several proposals to Newsom and legislative leaders, and union members Saturday solicited signatures for a letter that outlined some of them, which Playbook obtained. Cuts to spending on in-home care, including to providers' overtime, in Newsom's May budget proposal have prompted the union to get involved. Members of the Latino Caucus — which is fighting the governor's proposal to cap Medi-Cal enrollment for undocumented immigrants and require those recipients to pay premiums — have pitched tax increases as a way to prevent those reductions. 'We're not accepting a two-tier system,' said Elhawary, a member of the Latino Caucus, who is pushing for increased taxes. 'I think that we probably have a majority in both houses that are really looking at it. It's just figuring out which are the best options.' The Medi-Cal issue, along with a heftier spending plan from the Senate, have created disagreement between the chambers, according to two of the people interviewed, who were granted anonymity to discuss private deliberations. If tax-hike talks peter out during this summer's budget negotiations, they could still come back in the fall. State Sen. Anna Caballero predicted the Legislature will likely have to come back then and adjust its budget if and when Congress passes its megabill. Tax increases will be necessary, state Sen. Sasha Renée Pérez argued — 'especially if we see the Trump big ugly bill pass.' — with help from Tyler Katzenberger and Lindsey Holden GOOD MORNING. Happy Wednesday. Thanks for waking up with Playbook. You can text us at 916-562-0685 — save it as 'CA Playbook' in your contacts. Or drop us a line at dgardiner@ and bjones@ or on X — @DustinGardiner and @jonesblakej. WHERE'S GAVIN? Nothing official announced. ON THE AIRWAVES BILINGUAL GOP — The NRCC is defending President Donald Trump's budget megabill by going on the offensive with a Spanish-language ad blitz in the Central Valley. The digital ads accuse Democratic House members of supporting the 'largest tax increase in generations' by opposing the GOP's efforts to extend 2017 tax cuts. Among those targeted are battleground Reps. Adam Gray and Josh Harder — as well as Reps. Jim Costa and Raul Ruiz, whose districts lean bluer but have shifted closer to Trump in recent cycles. Christian Martinez, the NRCC's national Hispanic press secretary, said those Democrats' votes against the bill 'betrayed our Latino communities.' Meanwhile, Democratic lawmakers have hammered the GOP over the bill's provisions that would slash spending on Medicaid, food stamps and other safety-net programs. CONVENTION EXTRAS REFUND THE POLICE? — One item that flew under the radar at the California Democratic Party's convention last weekend: the party's complete about-face on the 'defund the police' movement. Party delegates approved, on a simple consent vote, a resolution that calls for 'full staffing' in police departments. The measure passed with little fanfare, on the final day of the convention after many delegates had already boarded flights home from Anaheim. But it illustrated just how much the pendulum has swung in terms of how Democrats view issues of police accountability. Just five years ago, delegates to the party's 2020 convention approved a resolution — amid a national debate about race following George Floyd's murder — that stated the 'California Democratic Party supports police defunding.' It called for redirecting money to programs to combat the unjustified use of lethal force against people of color. The latest resolution was sponsored by San Francisco County Democratic Party leaders and was part of a larger package of proposals to shift Democrats away from so-called identity and performative politics. Marjan Philhour, a San Francisco party official who wrote the resolution, said its approval suggests party insiders are ready for new messaging on law-and-order issues. She said the 'defund the police' movement alienated many Chinese and AAPI voters who had traditionally leaned Democratic. 'The extreme left is facing a reckoning,' said Philhour, who's vying for a seat on San Francisco's Police Commission. 'Public safety is really core to the functioning of cities.' STATE CAPITOL CHEERS — Assemblymember Matt Haney's bill to give cities the option of allowing bars to serve alcohol until 4 a.m. on weekends in dedicated zones cleared the Assembly on Tuesday and is headed for the Senate. The passage was no small feat. More sweeping proposals to allow some bars to stay open until the same hour have failed year after year in the state Legislature, including a 2022 proposal that fell far short of the votes it needed in the lower house. CLIMATE AND ENERGY SOLAR WARS PT. III — The saga of California's ever-evolving rooftop solar subsidies is set to take a turn today when the California Supreme Court hears arguments for and against the California Public Utilities Commission's role. At the same time, lawmakers are set to take their own bite out of the debate with consideration of a bill that goes even further than the CPUC in slashing subsidies. Read more about the fights in last night's California Climate. Top Talkers BRIBERY PROBE GROWS — Federal prosecutors told San Leandro Councilmember Bryan Azevedo that he is the target of an investigation into potential crimes including bribery and lying to federal agents, the San Francisco Chronicle reports. The U.S. Attorney's Office for the Northern District of California sent a letter to Azevedo on May 12, telling him to contact prosecutors if he was 'interested in resolving this matter short of an indictment.' HIGH STAKES — Sales at California's cannabis stores have hit a five-year low following an 11 percent drop in transactions, SF Gate reports. Experts have warned that the industry is in trouble, plagued by high regulatory fees, taxes and competition from the unlicensed market. AROUND THE STATE — The Fresno Police Department has 66 open positions despite having the largest force in the city's history. (The Fresno Bee) — A 70-year-old man in El Sereno is protesting his eviction by camping out in a tree house in his backyard — five years after he illegally seized the vacant state-owned home. (Los Angeles Times) — San Luis Obispo County's first battery plant, the Caballero Energy Storage project, is up and running. The facility can power 100,000 homes for up to four hours. (The San Luis Obispo Tribune) PLAYBOOKERS PEOPLE MOVES — Charlie Arreola is the new director of external affairs and partnerships at the state Office of Exposition Park Management. He previously served as the Southern California organizing director for Harris for President in 2024. — David Bournazian has joined the firm Norton Rose Fulbright's product liability and consumer disputes practice as a partner in the Los Angeles office. He joins NRF from K&L Gates. — Anthony Martinez is now manager of marketing and communications at the California ISO. He previously served as senior communications adviser and digital director at DOE throughout all four years of the Biden Administration. BIRTHDAYS — Christian Arana at the Latino Community Foundation … Meta's Ryan Daniels … Andre de Haes at Backed VC BELATED B-DAY WISHES — (was Tuesday): Jacqueline Hartsough in the office of Rep. John Garamendi … (was Monday): Emeryville Councilmember Courtney Welch (cocktail: tequila, neat with lime) WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO's California Playbook. You can now submit a shout-out using this Google form.
Yahoo
03-06-2025
- Business
- Yahoo
US House Speaker Johnson backs Senate bill to toughen sanctions on Russia
U.S. House Speaker Mike Johnson voiced support on June 2 for a Senate-backed bill aimed at strengthening sanctions against Russia, the New York Post reported. A bipartisan group of U.S. senators said in late May that they are ready to vote on a bill on sanctions against Russia if peace talks on the Russia-Ukraine war do not progress soon. The bill, introduced to the Senate in early April, would impose new penalties on Russia and slap 500% tariffs on imports from countries that buy Russian oil, petroleum products, natural gas, or uranium. "There's many members of Congress that want us to sanction Russia as strongly as we can," Johnson said. "And I'm an advocate of that." U.S. President Donald Trump said he had not yet imposed new sanctions on Russia because he believed a peace deal might be within reach. "If I think I'm close to getting a deal, I don't want to screw it up by doing that," he said, but added he is prepared to act if Moscow stalls further. Russia and Ukraine held a second round of talks in Istanbul on June 2. Kyiv presented a peace proposal that reportedly included potential easing of sanctions on Moscow, among other clauses. The condition proposed by Ukraine is that sanctions are automatically renewed if the ceasefire agreement is broken. Following the new round of talks, Russia proposed a limited two- to three-day ceasefire in specific front-line areas to recover the bodies of fallen soldiers, while continuing to disregard Ukraine's call for a 30-day unconditional ceasefire supported by Western partners. Read also: Sanctions on Russia are working, Ukraine just needs more We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
01-05-2025
- Politics
- Yahoo
Policy, budget war boils over in Florida Capitol as DeSantis slams 'House of Pettiness'
Heading for overtime and deadlocked on budget talks on day 58 of Florida's 60-day legislative session, Senate GOP leaders lashed out at the House over a string of bills stripped of key Senate-backed provisions, deepening the rift between chambers. The disdain was echoed by Gov. Ron DeSantis, who dubbed the chamber the 'House of Pettiness,' but rebuffed by House Speaker Daniel Perez, who accused the Senate of 'emotional blackmail.' The breaking point on April 30 was a bill (SB 1620) that sought to codify recommendations from a task force on mental health and substance abuse, including a provision to prioritize licensing for short-term residential treatment facilities. The Senate bill included a provision creating a substance abuse and mental health research center at the University of South Florida, and named it after Sen. Darryl Rouson, a St. Petersburg Democrat who has championed the cause of substance abuse recovery after his own battles with drug addiction. The House stripped out that piece of the bill and sent it to the Senate, where several members decried the move: 'This is what we deal with,' said Sen. Ed Hooper, R-Clearwater, lead negotiator of the Senate in budget talks. 'We will make it right – or else.' Hooper's remark was slammed by Perez, a Miami Republican: 'I have enormous respect for Senator Rouson. I admire his public service, and I would be happy to collaborate with the Senate to honor him,' the House speaker said in a released statement. 'But the action of the Senate today to name a center after Senator Rouson as a means of emotionally blackmailing the House into doing what they want is unconscionable. The comments of 'or else' were a threat to the Florida House and beneath the dignity of the Florida Senate,' he added. Perez and Senate President Ben Albritton, R-Wauchula, have been unable to bridge a divide on the budget, largely because of the wide gaps in tax cut plans. Perez wants to cut the state sales tax from 6% to 5.25%. Albritton fears that would slash taxes by too much in future years, when economists project a nearly $7 billion shortfall in two years. The gap between the House and Senate budgets is $4.4 billion, with the House at nearly $113 billion. After several offers made between the chambers, frustration is spilling into the open after negotiators had been holding out hope for a deal. Hooper and House budget chief Rep. Lawrence McClure, R-Dover, had already admitted last week that the lack of an agreement meant they wouldn't be able to pass a budget during 60-day session, set to end May 2. That means the Legislature will head to overtime, still needing to pass a spending plan for the budget year that begins July 1. And the stalemate over the budget threatened to seep into other substantive bills. For example, Albritton's priority 'Rural Renaissance' bill (SB 110) this year is designed to provide more funds, health care and education options in rural areas. But the House rewrote the bill, watering it down and sending it back to the Senate. Sen. Corey Simon, R-Tallahassee, called it a 'bastardized' version; the Senate rejected the House changes and sent it back. Despite the rancor, some major bills were completed April 30. Lawmakers passed a bill to give condo owners more time to pay assessments placed on their units to pay for inspections and maintenance resulting from new requirements passed by the Legislature after the 2021 collapse of the Champlain Towers building in Surfside. The measure is a priority for DeSantis, who has repeatedly slammed the House for pushing forward a condo bill that didn't go as far as he wanted. He's also clashed with Perez over the lack of movement on property tax cuts, reductions in spending for state law enforcement agencies and a House probe into the Hope Florida Foundation, the fundraising arm of a program championed by First Lady Casey DeSantis. The foundation funneled $10 million connected to a settlement over alleged Medicaid overpayments through other groups to a political committee opposed to an amendment on the 2024 ballot to legalize recreational marijuana. DeSantis later chimed in on the spat between the chambers over the Rouson naming provision: 'The Florida House of Pettiness in all its glory,' DeSantis posted on X. At an appearance in Fruitland Park to again defend Hope Florida, the governor once again berated the House, calling it "dysfunctional and unsuccessful." Whether any progress is made toward a 2025-26 state budget by May 2, he added that "this will go down as the least productive Florida House of Representatives in decades.' Perez defended his chamber, saying they wanted to stick to the recommendations from the task force, and the center to be named after Rouson wasn't among them. 'The Senate created a backdoor appropriations project,' Perez said. 'They did so unilaterally, fully aware that the House did not wish to include additional items in the bill beyond the commission's recommendations.' With the deadline to end the session fast approaching, lawmakers haven't decided whether to extend the session to reach a budget deal or adjourn and return to the Capitol in May or June to complete the spending plan – the one job the state constitution requires them to do. Gray Rohrer is a reporter with the USA TODAY Network-Florida Capital Bureau. He can be reached at grohrer@ Follow him on X: @GrayRohrer. This article originally appeared on Tallahassee Democrat: DeSantis slams 'House of Pettiness' as legislative session sputters
