California Governor Gavin Newsom confronts GOP pushback over new tax proposals

California lawmakers are advancing Senate Bill 762, which would let select counties and cities raise sales taxes above the 2% cap. Republican House leaders Heath Flora and Juan Alaniz voted in favor of the bill, drawing criticism from fellow Republicans and donors who argue the measure would increase living costs. The bill awaits a final vote in the state Senate before going to Governor Gavin Newsom.

Separately, California Republicans have written to the Trump administration urging it to deny approval for a newly signed managed‑care organization tax. The tax, endorsed by Newsom, would require insurers to pay $8.85 per enrollee, potentially adding about $400 per year to family premiums. GOP officials claim the tax shifts the burden onto privately insured families while the state seeks additional federal funding.