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California Democrats are once again proving who really pays the bills in Gavin Newsom’s California: working families, small businesses, and the middle class.
But in a hypocritical move, CA Democrats are rushing to oppose a massive tax on billionaires. (Note: Reform CA opposes the Billionaire Tax too, but at least we are consistent!)
Carl DeMaio, Chairman of Reform California and a California State Assemblymember, is blasting Newsom and Sacramento Democrats for pushing new taxes and hidden costs on working families — while at the same time opposing the California billionaire tax measure.
“Republicans are consistent: we oppose ALL costly and unfair tax hikes - full stop. But Gavin Newsom and California Democrats are for raising taxes on the middle class while protecting billionaires,” DeMaio notes.
How Democrats Are Taxing the Middle Class
Sacramento Democrats have made one thing clear: when they need more money, they go straight after working families and the middle class.
Here are just some of the ways Newsom and California Democrats are raising costs on everyday Californians:
Tax Hikes: The state budget deal contains over $3.5 billion in tax hikes — including a new sales tax on software purchases and a continued job-killing payroll tax hike on every employee in the state.
Health Insurance Premium Tax: The latest state budget includes a new tax charged on health plans — a cost that industry leaders warn will be passed on to consumers. For a typical family of four, that could mean roughly $425 more per year in higher healthcare costs.
Higher Gas Prices: California’s gas tax jumped again on July 1 to 63.4 cents per gallon, with diesel rising to 48.2 cents per gallon. That means families pay more just to commute to work, drive their kids to school, and live their daily lives.
Costly Mandates: Insane regulations and mandates imposed by out-of-control state agencies remain one of the biggest drivers of California’s high cost of living — but the budget contains no serious reforms to rein in these costs.
“These are backdoor tax hikes on families who already cannot afford California,” DeMaio said. “Sacramento politicians created the budget mess, and now they want working families to clean it up.”
Newsom Opposes Billionaire Tax While Middle Class Pays More
The hypocrisy becomes even more obvious when you look at the billionaire-tax debate.
While Newsom and California Democrats keep raising taxes and costs on working families, Gov. Gavin Newsom is publicly listed as opposing a 2026 ballot measure that would impose a one-time tax on individuals and trusts with more than $1 billion in covered assets.
Reform California opposes tax hikes across the board — but DeMaio says the contrast exposes the hypocrisy of Sacramento Democrats.
“This is not about fairness — it is about protecting Sacramento’s political machine. Working families get squeezed, while the political class and their billionaire allies get protected,” stated DeMaio.
The issue is not that California needs another tax. The issue is that Sacramento politicians are constantly looking for new ways to take more money from Californians instead of cutting waste, reducing spending, and making government live within its means.
California already has some of the highest taxes and highest cost of living in the country. Families are paying more for gas, groceries, housing, utilities, healthcare, insurance, and everyday necessities. Small businesses are struggling with higher operating costs, higher labor costs, higher energy costs, and more government mandates.
But instead of offering relief, Sacramento Democrats keep piling on.
“They do not have a revenue problem — they have a spending addiction,” DeMaio said. “Instead of fixing the mess they created, Sacramento politicians keep reaching into the pockets of working Californians.”
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