Your Health Insurance Just Got More Expensive. Here's Why California's Betting Big on New Taxes

California lawmakers are about to pass two taxes that’ll hit your wallet in ways you might not expect—and the state Senate is voting on them Thursday morning at 9 a.m.

Here’s the reality: If you’ve got private health insurance, you’re looking at roughly $100 more per year. That’s not a fortune, but it adds up. The state’s betting this $2 billion annual haul will help shore up Medi-Cal, California’s insurance program for low-income residents. Fair argument that the state needs the money. Less fair that you’re footing the bill for it.

But there’s more. A second tax targets digital software—think Microsoft Office, QuickBooks, Slack, and Workday. Starting at 7.25%, it could vary depending on your region and is projected to bring in roughly $900 million annually for the state’s general fund. Sounds harmless, right? Except business groups are already warning that every business in California will feel this pinch, and guess who pays for it in the end? You do, through higher prices on everyday goods.

So why now? Lawmakers are framing these taxes as a necessary response to federal funding cuts from the Trump administration. They’re also pushing through the largest state spending plan in history at $355 billion and want to avoid making tough budget cuts themselves. Translation: Sacramento’s choosing revenue over restraint.

The bigger question isn’t whether these taxes pass—they probably will. It’s whether California’s budget strategy of raising taxes instead of cutting spending is sustainable, or if we’re building a house of cards that’ll eventually topple. Either way, your June paycheck just got a little lighter.