California’s cost of living is notably higher than anywhere else in the U.S., and it seems to be getting worse each year.
Instead of addressing the issue, state and local officials are, well, increasing costs even more with outrageous tax hikes and new regulations that just add to the financial burden.
A recent study highlights that for a typical middle-class family of three in California, the cost of living is a staggering $29,753.16 above the national average.
This study broke down household expenses to see how much more Californians pay compared to the rest of the nation. They found that owning a home costs 124% more, renting an apartment costs 50% more, gas prices are up by 50%, food is 27% more, water is 48% more, and taxes are 45% more. Childcare can cost 51% more, electricity is 101% higher, and car insurance trails behind at 20% more.
Many believe the only solution to this crisis is for voters to step up at the polls during the 2026 midterm elections. Change won’t happen until politicians begin to feel the repercussions of their decisions regarding affordability.
My initiative, Reform California, aims to prioritize affordability in every targeted district for this November’s state legislative elections.
We really need to shed light on why California’s living costs are so elevated. As long as politicians can dodge accountability by shifting blame onto others, nothing will ever change.
Take Governor Gavin Newsom, for instance. He’s consistently pointed to President Trump’s tariffs as the root of California’s affordability crisis. And, whenever gas prices surge, it seems he can’t resist accusing oil companies of “price gouging.”
Just recently, Tom Steyer, a billionaire and political figure, invested heavily in ads blaming “monopolies” for increasing power prices.
To buy into this blame game means believing that tariffs, monopolies, and price gouging exist only in California.
The best response to these claims is the data from the Transparency Foundation which illustrates that state and local policies are fundamentally the issue.
Last year, I proposed the California Cost of Living Reduction Act (AB 23). This act would automatically cut taxes and regulations if the price of essential household items surpasses the national average by 10%.
For instance, take healthcare. Due to excessive regulations, an emergency room visit in California averages about $3,238, while in Maryland, it’s just $682. An ambulance ride here can cost $2,407, compared to only $662 in North Carolina.
With AB23, agencies that regulate or tax these services would have to implement cost reductions based on states with lower prices.
It won’t make us the cheapest state across the board, but it can help alleviate high costs tied to poor government policies.
According to Transparency Foundation’s findings, each California household could save at least $10,000 in the first year, possibly up to $30,000 if cost-cutting measures are put in place for all household items.
Opponents may argue that California’s taxes and regulations serve a purpose, yet that viewpoint crumbles when we see other states successfully delivering quality services at lower prices.
Another bill I introduced, AB 567, would penalize politicians who ignore cost-of-living issues by suspending their ability to collect special taxes on those items.
For instance, many California homeowners are grappling with substantial increases in their home insurance premiums. They might not realize that because of the special insurance sales tax, state politicians profit more when these premiums rise.
This year, this special tax is expected to grow rapidly, with projections indicating it could exceed $4 billion.
Under my AB567 proposal, that money would be reclaimed, and rebates would be distributed to homeowners to help ease their financial burden.
In essence, as long as we’re feeling the pinch from high prices, politicians should share in that discomfort as well.
During the 1992 presidential campaign, strategist James Carville famously boiled down the election’s focus to, “It’s the economy, stupid!” In 2026, I’m determined to turn California’s midterm elections into a similar battle cry: “It’s the cost of living, stupid!” Let’s fight for change together at ReformCalifornia.org.
