Two officials from Los Angeles County are advocating for a new tax increase that would raise the cost of virtually all purchases in the area, from shopping to dining out.
Supervisors Hilda Solis and Holly Mitchell have proposed a half-cent consumption tax, suggesting it could help address upcoming federal cuts in health funding that threaten Medi-Cal services.
However, this tax, which would impact retail sales and restaurant transactions, faced swift opposition. Critics argue it would unfairly raise prices for families, even those who don’t utilize the medical services in question.
Mark Joffe, a fellow at the California Policy Center, expressed concern, asking, “Why should lower-income residents of Los Angeles County have to pay more for everyday items like clothes and school supplies when they are already facing a high sales tax?”
Joffe also highlighted that voters had already approved a sales tax hike just two years ago.
If this new measure goes through, it would further strain residents who are already grappling with rising living costs, pushing the sales tax rate in many cities over 10%.
On Tuesday, Solis and Mitchell intend to present the proposal to the Los Angeles County Board of Supervisors, who will determine whether to put it on the ballot for the June 2, 2026 primary election.
Mitchell remarked, “I don’t take this lightly. A 0.5 percent tax is being considered because crucial safety-net services could be at risk, potentially leading to even higher costs for residents in the largest county in the nation.”
The proposed tax, if approved, could continue for five years, with advocates claiming it would generate around $1 billion annually to support county hospitals and clinics, especially for individuals who have lost Medi-Cal coverage.
Mitchell added that the tax would extend until October 1, 2031, and would include public oversight and audits.
Supporters see this tax as a necessary step to prevent cuts to vital services. Louise McCarthy, president of the Los Angeles County Community Clinic Association, emphasized, “The measures we’re proposing are urgent to protect access to essential care.” She noted the risks are particularly high now.
Coalition leaders are determined to get this measure before voters.
If the county supervisors do not support having it on the June ballot, there are plans to gather signatures to push for an initiative in the November election.
This proposal comes at a time when there’s another statewide initiative by the Service Employees International Union, aiming to impose a one-time 5% tax on California billionaires to fund healthcare.
A similar initiative recently passed in Santa Clara County, raising their sales tax by five-eighths of a cent, expected to generate about $330 million a year for local hospitals and clinics.
