The Latest: Sales, business tax may fund California health

Markets Associated Press

The Latest on a California proposal for a single-payer health care system (all times local):

Continue Reading Below

1:10 p.m.

Critics say supporters of a longshot California proposal to replace insurance companies with government-funded health care are being unrealistic as they push to fund sweeping changes with $106 billion annually from a sales tax hike and a new tax on business revenue.

Bruce Benton with the California Association of Health Underwriters said the report made public Wednesday lacks details.

The report commissioned by an influential California nursing union was unveiled as the state Senate closes in on a Friday deadline to vote on the bill to eliminate health insurance companies and provide government-funded health care for everyone in the state.

Benton says the University of Massachusetts-Amherst study relies on shaky assumptions, including one that Donald Trump's administration would go along with the state's plans.

Continue Reading Below

The study suggests a 2.3 percent gross receipts tax and a 2.3 percent sales tax to help pay for universal health care in California, offset for the state's poorest consumers with a tax credit.

___

10:17 a.m.

A report commissioned by a California nursing union suggests funding a single-payer health care system with a sales tax hike and a new tax on business revenue to raise $100 billion a year.

The report released Wednesday was prepared by researchers at the University of Massachusetts-Amherst.

It comes as the state Senate nears a Friday deadline to vote on the bill to eliminate health insurance companies and provide government-funded health care for everyone in the state.

The bill is promoted by the California Nurses Association, but the union and lawmakers supporting it have said how it would be funded.

The union's study suggests a 2.3 percent gross receipts tax and a 2.3 percent sales tax that would be offset for the poorest consumers by a tax credit.