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Democrats Propose Tobacco Tax to Help Fund Healthcare Package

After months with little progress, legislative Democrats have proposed a new healthcare package. It's more like Governor Schwarzenegger's plan -- and it includes a new tobacco tax.

Democrats Propose Tobacco Tax to Help Fund Healthcare Package

After months with little progress, legislative Democrats have proposed a new healthcare package. It's more like Governor Schwarzenegger's plan -- and it includes a new tobacco tax.

Assembly Speaker Fabian Nunez says he and the Senate leader have agreed to the governor's mandate that all Californians be required to have insurance. They've also agreed to decrease the share employers contribute to coverage -- something the governor wanted.

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Nunez says it's a breakthrough.

Nunez : What we're announcing is a healthcare reform plan that is more comprehensive in scope, and we believe is more palatable to voters than all the other plans that have been on the table.

Voters would be asked to approve the funding for the plan next year. That would include a $2-per-pack tobacco tax, and a fee on hospitals and employers.

Democrats have rejected the governor's idea of leasing out the state lottery to help pay for healthcare.

The governor's Health and Human Services Secretary says the Democrats' proposal is a positive sign -- but there are still details to be worked out. Nunez says the full Assembly could vote on the plan this month.