California Gov. Gavin Newsom’s administration has asked a $2.8 billion bailout for taxpayer-funded Medi-Cal, in addition to the $3.4 billion requested last week.
With Medi-Cal spending $9.5 billion on illegal immigrant health care this year, Newsom told a press conference that the benefits expansion was at least partly to blame. He also expressed his support for universal, taxpayer-funded healthcare.
“It’s partial,” Newsom said, referring to the link between expanding taxpayer-funded healthcare to illegal immigrants and the $6.4 billion bailout request. “I believe in universal healthcare … it’s just a core principle.”
Newsom stated that turning back the expansion is not on his “docket,” but he is open to “changes.”
With an estimated 1.9 million illegal immigrants and $9.5 billion spent on their healthcare through Medi-Cal, the state is spending about $5,000 per illegal immigrant this year.
The average illegal immigrant in California makes $13 per hour, often in untaxed cash, or $27,040 per year if they work 40 hours per week. If taxed, this wage would generate $464 in state income tax. Assuming 30% of leftover income goes to rent and the remainder goes to sales-tax qualified spending, that’s an additional $1,372 in state sales tax.
This means that a working illegal immigrant may pay approximately $1,846 in state taxes per year, which is far less than the $5,000 spent by Medi-Cal, let alone other services like CalFresh, the state’s food assistance program, and other benefits they may claim on behalf of their children born in the United States.
Trump-era Republicans portray illegal immigration as a fiscal drain, pointing to the disparity between the high expenses of services used and the relatively little taxes levied on even working, single individuals.
“Newsom doubling down on bankrupting CA by giving free universal healthcare to illegal immigrants,” said Assemblyman Bill Essayli, R-Corona, in response to the governor’s conversation. “He’s unfit to be Governor, let alone President!”
Reference: Newsom’s Medi-Cal requests $6.4B bailout, spending $9.5B on noncitizens
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