You are paying for the health care of low-wage Walmart employees. Here is why | Opinion
Californians are paying for their bargain shopping twice — once at the cash register and again through taxes that help underpaid workers survive.
That’s because too many low-wage employees can’t afford enough food, much less pay health insurance premiums, so they turn to government-funded programs.
At a moment when
Gov.
Since he didn’t, both houses of the Legislature should push for this common-sense step.
The
These programs are helping large numbers of full-time workers survive in places like
“Currently, 42% of
If a corporation’s workforce depends heavily on public assistance, that company should help reimburse the public systems supporting that workforce.
Americans have been told for generations that Walmart’s low prices were a triumph of efficiency and scale. Well, that’s not the whole story. Low-wage employers are leaving it to taxpayers to subsidize the doctor visits, rent and groceries of their employees.
One widely cited national study estimated Walmart’s workforce costs taxpayers roughly
This goes beyond Walmart, though. A 2024
Retail is brutally competitive, and economists rightly debate whether higher labor costs would accelerate automation or drive companies elsewhere.
But
Workers don’t end up on public assistance by accident. Low pay, unstable schedules, reduced hours and limited benefits are often exactly why they qualify in the first place.
A 2026
And in
The role these companies play in working-class instability is shockingly well-documented, yet federal and state officials have done little to discourage it. Rather, they offer these employers tax advantages and accounting structures unavailable to ordinary wage earners.
Sen.
“When 42% of the people on
Rather than adopting the fair share plan, Newsom proposed reinstating
Healthcare advocates warn the cuts would destabilize programs designed to keep medically fragile Californians out of emergency rooms and repeated crises.
Fair share revenue could reduce pressure to cut
Economists and business groups have raised legitimate concerns. Would higher labor costs accelerate automation? Would some firms relocate? Can consumers tolerate the inevitable higher prices? Would pension funds lose investment returns?
But
Some will argue corporations already pay taxes to support these systems. But those revenues should be used to support the overall functioning and quality of life of the state: schools, infrastructure, public safety, parks, transportation and more.
Those taxes were never intended to permanently underwrite corporate compensation strategies that trap workers in a cycle of deprivation. California’s governor and legislators must start billing the companies behind these low-wage models.
©2026 The Sacramento Bee. Visit sacbee.com. Distributed by Tribune Content Agency, LLC.



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