Time to Cut Gas Taxes?

The Bureau of Labor Statistics announced earlier this month that energy prices in the U.S. rose 33 percent for the 12 months ending November.  In many regions of California, prices rose even higher.

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In the L.A.-Long Beach-Anaheim region, energy prices jumped 35 percent. In the Inland Empire, prices shot up 36 percent.  And in the San Francisco area, prices climbed 25 percent for the 12-months ending October (the latest available data).  Analysts attribute much of the increase to the price of gas.

Californians now pay $4.67 per gallon at the pump, compared to an average of $3.32 for the rest of America. But what most Californians don’t realize is that their dollars aren’t all going to local gas station owners or far-flung oil companies. A whopping 67 cents of every gallon goes to state taxes and 18 cents to Federal taxes.  This prompted one California lawmaker to title his op-ed: “I’m a Democrat and it’s time for our government to stop making gas more expensive.”

Congressman Josh Harder (CA-10) from the Central Valley reminded his colleagues in Sacramento that the massive infrastructure bill passed last month was already going toward fixing roads and bridges.  The “kicker,” Harder wrote, is that “our families are getting taxed twice at the pump for a service — rebuilding our infrastructure — they’re only getting back once.”

He pointed out that state governments, soon to receive billions in federal infrastructure money, “shouldn’t fleece drivers to pay for roads and bridges the federal government is already paying to fix, especially as businesses are recovering from the pandemic. Instead, state lawmakers across the country should freeze and lower these gas taxes to put money back in the pockets of working families.”

Refreshing the memories of Sacramento lawmakers, the gas tax, Harder wrote, was expected to raise $5 billion annually when it was implemented in 2017. But along came a $31 billion budget surplus for 2022 and another $30 billion in federal dollars from the new bipartisan infrastructure law.  Awash in cash, you would think that lawmakers could afford a little generosity and offer some much-needed tax relief to Californians.

Click here to read the full article at the Pacific Research Institute

Comments

  1. The myriad of taxes are enacted to keep the unwashed down and to feed the unbridled corruption which has permeated ALL areas of gov-corp as ordered by the ones currently running this world.

  2. California has almost 400,000 miles of roadways that are heavily dependent on road taxes from fuel that contribute more than $7 billion annually, the same tax base that will be diminishing in the decades ahead as Electric Vehicles (EV) are not buying the fuel.

    As EV growth continues, lookout for Governor Newsom’s next Executive Order for a VMT (vehicle mileage tax) requiring annual odometer readings so that each person pays their fair share to maintain the roads they are using to replace the diminishing fuel taxes!

    • Hopefully Californian’s will wake up and vote him out of office…remember, we have TERM LIMITS in California…our last hope for sanity!

  3. Cars Are Basic, Inc. attacked the intentional diversion of road repair gasoline taxes by then Gov. Brown and now Gov. Newsom.

    This tax needs to be reduced. The subsidy of none gas vehicles at the expense of the 90% majority who drive them has to stop.

    Newsom and the Democrats in Sacramento are clear in their diversion and neglect of the freeways and roads.

    Remember Newsom stated he would and is in the process of taking $6 Billion from the gas tax for bike paths.

    Remember Newsom stated the High Speed Rail was broken and would never travel at the projected speeds. Yet he gave them $2 Billion to continue as broken plan. He stated electric vehicles is the future a year ago and diverted more money to charging stations at the expense of the working class.

    You voted for him and the majority party. Is this what you wanted? Is the subsidy of expensive electric vehicles and their fuel (electricity) that cannot be sustained if their use reaches 30% of the state’s rolling stock?

    These are serious questions with massive long range impacts of the working poor and middle class.

    Need help with transportation? Contact CarsAreBasic.org

  4. Boris Badenov says

    1. Calif is sitting on HUGE oil and Nat Gas reserves but refuse to use them, preferring to import a huge percentage of our oil from the Middle East, using oil fired tankers, thanks to the Enviroloons, the same Enviroloons that 2. refuse to allow more refineries or power plants to be built, preferring to power their Teslas with wishful thinking and unicorn farts…oh wait…methane…cancel that one.

  5. It is Time to start throwing the Communist demoshits out of office…Demshits think they have the voting system rigged in their favor but they are about to see that it is not…..2022 and 2024 will be a BLOODBATH FOR ALL COMMUNISTS DEMOSHITS….

  6. Douglas D Settle says

    I-15 which runs from San Diego through the Inland Empire and on to Las Vegas is long overdue widening to accommodate Las Vegas, Laughlin NV. traffic. I-15 remains mostly 2 lanes despite generating billions in fuel taxes over its lifespan.

  7. So, CA sits on Oil/Nat Gas reserves, wants to mandate out of existence newly sold gas powered cars by 2035, and halfway around the world a Finnish man blows up his Tesla Model S because it would’ve cost him 24 grand to put a new battery pack in the car.

    Their energy management is anything but coherent.

    And they think EVs are the better choice for the everyday Californian, private pocketbook be damned.

    Riiiiight.

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