California Gov. Newsom proposes tax cuts, expanded health care for non-citizens in the state

California Governor Gavin Newsom on Monday proposed a budget that would cut taxes while also promising to pay the health care expenses of all of the state’s low-income adults who are living in the country illegally.

It will cost state taxpayers about $2.2 billion per year to cover the cost of health care for the state’s low-income immigrants. Newsom’s tax cuts would reduce revenue by more than $6.5 billion.

California does have highest unemployment rate in the country; however, it is on target to collect at least $25 billion in capital gains taxes in 2021, the most ever. A “capital gain” occurs when someone sells an asset, such as a stock or real estate.

“We have the capacity to invest in our growth engines, invest in the future, as well as make sure that we prepare for the uncertainties that the future presents.” Newsom said, selling his plan to put $34.6 billion in reserves.

Immigrant health advocates have been pushing for this since the federal Affordable Care Act took effect in 2014. That dramatically reduced the number of people in California without health insurance.

“The glaring gap was those who were left out because of immigration status,” said Sarah Dar, director of health and public benefit policies for the California Immigrant Policy Center. Newsom’s plan, if it becomes law, would cover nearly 700,000 additional people.