Taxing the rich to pay for healthcare for the poor

SPEAKER_1 (0:00)

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Kimberly Adams (0:31)

Checking in on the toy business and California's effort to tax the rich to pay for health care for the poor.

From Marketplace in Washington, I'm Kimberly Adams. It's been a bit of a rough year for toy maker giants. Mattel, the company responsible for Barbie, has seen income decline for the past six quarters. Its stock has lost about a fifth of its value this year, and this week, another shareholder group urged the company to consider a sale. Meanwhile, Hasbro stock has lost 16% since February. Marketplace's Kaylee Wells explains why they're struggling.

Kaylee Wells (1:05)

It's not an industry-wide issue. It's just that the legacy names have had a tough time keeping up with the trends this year.

SPEAKER_4 (1:11)

The challenge with the toy business is that it's always dependent on the whims of a seven-year-old.

Kaylee Wells (1:16)

Chris Byrne is an independent toy industry analyst and consultant. He says arts and crafts think Crayola, and collectibles think Labooboo, Pokemon. That's what's selling right now. Mattel and Hasbro aren't leading those particular niches.

SPEAKER_4 (1:30)

This is what my pathetic high school football team used to call a building year, I think, for both of them.

Kaylee Wells (1:34)

Meanwhile, smaller companies can follow trends more quickly. Think of Neato, the squishy fidget blob, and other viral sensory toys, says James Zahn. He is editor of the trade publication The Toy Book.

James Zahn (1:46)

A lot of the independent specialty retailers that we speak to on a regular basis are seeing upwards of 200% to 300% sales growth on that.

Kaylee Wells (1:55)

But Zahn says 2027 is likely going to be a better year for the big companies. Hasbro now has the Harry Potter license, just as the new TV show is coming out.

James Zahn (2:04)

Conversely, Mattel, they did some big deals. They're getting Teenage Mutant Ninja Turtles for the very first time. They're also getting the DC Comics license back.

Kaylee Wells (2:14)

And Zahn says those nostalgic names are important for success because the majority of the toy industry is actually grownups collecting for themselves. I'm Kaylee Wells for Marketplace.

Kimberly Adams (2:26)

Rideshare company Uber Technologies is expanding into the catering business. Uber announced Tuesday that it would buy the platform Easy Cater, which connects users, mostly businesses, to restaurants and caterers for meetings and events, as well as recurring workplace meals. It's an all cash $2.3 billion deal aimed at strengthening Uber's delivery business as well as its Uber 4 business division. Uber is basically flat in pre-market trading.

As you can tell, we do lots of numbers at Marketplace, and we have even more on social media. You can check out our video series, The Daily Number on our Instagram. We're at Marketplace APM.

And yes, help pay for Medicaid. California voters will decide something close to that in November. If it works, other states could copy the tax. Jackie Fortier with our partner KFF Health News has more.

Jackie Fortier (3:47)

Here's the pitch. California's Proposition 40 would put a one-time 5% tax on the wealth of the state's billionaires. Assets like artwork, stocks and bonds. The tax could raise tens of billions of dollars, and most of it would pay for healthcare programs. The idea comes from a Healthcare Workers Union, SEIU, United Healthcare Workers West.

SPEAKER_7 (4:07)

We are not pretending that it's a permanent solution.

Jackie Fortier (4:10)

President Dave Reagan says the money would fill the huge hole left by federal cuts from the sweeping Republican tax and spending bill passed last year. Medicaid cuts in particular could leave the neediest patients without insurance.

SPEAKER_7 (4:23)

None of us have ever lived through the reality of what it means when millions of people get thrown off the health insurance roles Chris Haney studied the ballot measure.

Jackie Fortier (4:33)

He's with the nonpartisan California Budget and Policy Center.

Chris Haney (4:36)

I'm not sure that you can say that this will stop clinics from being closed or public sector workers, health care workers from being laid off or people from losing their health care.

Jackie Fortier (4:47)

Part of the problem is timing. Starting in January, California's Medicaid program stands to lose about $30 billion a year, more than any other state. But billionaires filed their taxes in April, just like the rest of us. So, the tax money would show up late.