The 2020-21 Spending Plan: Health Budget and Policy

Oct 15, 2020 - The 2020-21 Spending Plan: Health Budget and Policy ‑$252 ‑$2,114 a Original proposal refers to the MCO tax as reauthorized and proposed to the federal government for consideration in 2019. b The MCO tax is only authorized for a half year in 2022 ‑23. c Approved tax refers to the MCO tax as modified by the administration and approved by the federal government in April 2020.
https://lao.ca.gov/Publications/Report/4281

The 2020-21 Budget: Staffing to Address New Independent Contractor Test

Feb 11, 2020 - Based on supplementary information we requested from the administration, we know that the proposal includes funding for 20 tax auditor positions, most of whom would work additional payroll tax appeals related to AB  5.
https://lao.ca.gov/Publications/Report/4151

Volatility of the Personal Income Tax Base [Publication Details]

Feb 8, 2017 - On the other hand, California's personal income tax (PIT) base was much more volatile. This is because (1) some of the more stable pieces of personal income are not taxed under California's PIT and (2) the PIT tax base includes capital gains, which are extremely volatile and are not counted as part of personal income in federal statistics.
https://lao.ca.gov/Publications/Detail/3548

The 2020-21 Spending Plan: Health Budget and Policy [Publication Details]

Oct 15, 2020 - These actions include the offsetting of what would otherwise be General Fund costs with (1) revenues from the federally approved reauthorized tax on managed care organizations and (2) federal Medicaid funds that are being provided to the state at an enhanced level during the term of the public health emergency.
https://lao.ca.gov/Publications/Detail/4281

The MCO Tax: A Flat Versus Tiered Structure

Jul 20, 2015 - Some MCOs with higher tax rates could cede some of their market share to other MCOs with lower tax rates. A flat tax woul d not have this effect. Regardless of which tax structure is in place, there are signs that the MCO industry is already moving toward greater consolidation.
https://lao.ca.gov/Publications/Report/3292

Increases excise taxes on the distribution of cigarettes and other tobacco products and applies the tobacco products excise tax to electronic cigarettes (Amendment #1). [Ballot]

Nov 30, 2015 - Tobacco and Electronic Cigarette Taxes Tobacco products are subject to state and federal excise taxes, and state and local sales and use taxes. In contrast, electronic cigarettes are currently not subject to state and f ederal excise taxes but are subject to state and local sales and use taxes.
https://lao.ca.gov/BallotAnalysis/Initiative/2015-081

The Uncertain Affordable Care Act Landscape: What It Means for California

Feb 17, 2017 - To encourage the use of HSAs, some Republican replacement proposals offer tax credits to individuals for contributions into an HSA. (The tax credit could either be some portion of the alternative health care tax credit discussed above or a separate tax credit.)
https://lao.ca.gov/Publications/Report/3569

Evaluating State Economic Stimulus Proposals [Publication Details]

Feb 1, 2021 - In this report, we offer the Legislature guidance on how to evaluate fiscal stimulus proposals. We pose six key questions to ask when assessing specific proposals and provide specific elements that can be incorporated into proposals to increase their potential effectiveness.
https://lao.ca.gov/Publications/Detail/4331

The 2021-22 Budget: Medi-Cal Fiscal Outlook

Nov 18, 2020 - Assume Statutorily Scheduled Expiration of Managed Care Organization (MCO) Tax For a number of years, the state has imposed a tax on MCOs ’ Medi ‑Cal and commercial lines of business. The state ’s previous MCO tax expired at the end of 2018 ‑19 and, in 2019 ‑20, the Legislature reauthorized the MCO tax in similar but not identical form to the prior tax.
https://lao.ca.gov/Publications/Report/4299

Revisiting the Unemployment Insurance Trust Fund Insolvency

Sep 30, 2016 - UI Program Is Financed Through Employer Tax Contributions. Employers pay both state and federal UI payroll taxes. State UI taxes are deposited into the state ’s UI trust fund to pay for benefits to unemployed workers.
https://lao.ca.gov/Publications/Report/3503/2