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Trump administration rejects California's health care tax

Courtesy: MGN

Gov. Gavin Newsom had planned to use that money to extend sales tax exemptions for diapers and tampons.

Posted: Jan 31, 2020 7:24 PM
Updated: Feb 1, 2020 10:25 AM

SACRAMENTO, Calif. (AP) - The Trump administration has rejected a proposed tax on managed care organizations in California. The decision could cost the state nearly $2 billion per year.

Gov. Gavin Newsom had planned to use that money to extend sales tax exemptions for diapers and tampons.

A letter from the federal government said it rejected the tax because it did not apply to all managed care organizations.

A spokesman for the California Department of Finance says the state will continue negotiating with the federal government and is confident they can reach an agreement.

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