Universal Healthcare for Californians

California could become the second state after Massachusetts to introduce a universal health care to more than 6.5 million uninsured Californians. Union leaders are against the plan because it will raise tax on the middle class. Under the plan businesses with more than ten workers will have to insure their workers or pay 4% of their payroll into a pool that will be run by the state. Small firms that make up close to 80% of the businesses in California will be exempted. The 1.2 million low income earners in the state will get a direct subsidy from the government. Accordingly, the news had been accepted favorably by the insurance industry that will have between four and five million new insured people as their clients. However, business people have claimed that it will impose more tax on them and the outcome will not be good in the long run. Moreover, it would definitely affect the good relationship the Governor had with business people who were his allies.