"County officials say that the tax increase is necessary to protect residents from looming federal cuts to Medicare and Medicaid, which could reduce the $13.7 billion budget by over $1 billion."
"The county has purchased four hospitals in six years, now operating primarily as a health care system, wherein health services consume half of the entire county budget."
"County supervisors convened a special meeting with little notice to the media, highlighting the urgency and potentially controversial nature of the proposed tax hike."
"The proposed sales tax hike could significantly burden lower-income residents, who may resist a 10% tax on essentials to support a system that pays many doctors very high salaries."
Santa Clara County supervisors voted to ask voters for a sales tax increase. If approved, sales taxes will rise significantly in San Jose, Milpitas, and Campbell, aiming to recover about a third of over $1 billion anticipated in federal cuts to Medicare and Medicaid. Presently, the county’s healthcare system, consuming half of the $13.7 billion budget, dominates its functions. A recent expansion increased local hospital bed capacity, although the decision did not foresee changes in federal policy. There is concern over the tax impact on lower-income residents.
Read at San Jose Inside
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