California would have to increase taxes on the middle-class, as European governments do through both income taxes and very high taxes on retail sales.Ī hint of that fact is found in the legislation that increases disability and family leave payments. At some point, the state would no longer be able to depend on just taxing high-income Californians, who now provide the majority of its revenue. However, the more extensive the benefits become, the more expensive they become for the state budget. Newsom already has an advisor working on the latter. It would, for example, have to eliminate out-of-pocket costs for higher education and perhaps create some form of guaranteed income. Of course, California still has much more to do if the “California way” Newsom cites is to continue its transformation into a European-style social democracy.

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