
Gas tax increase will make California’s poor, poorer.
State Senators are considering legislation to increase California’s special taxes on gasoline at the pump. Current low gas prices make the idea of a gas tax hike seem more acceptable to Sacramento’s politicians, expecting the impact of the tax will not be felt as much by taxpayers as oil prices in general spiral downward. But for California’s growing poverty class of 24% of the state, the largest in the nation, any hike in the gas tax would be an economic tragedy.
Known as “consumption taxes”, California’s gas taxes are already among the highest in the nation. In 2013, the state Board of Equalization, which has some administrative powers over gasoline at the pump, raised the state excise portion of the tax by 9%, to 39.5 cents a gallon, only to jerk more modestly to adjust the rate downward last year to 36 cents a gallon. Other sales taxes and fees raise the overall gas tax in California another 14 cents, adding at least 50 cents per gallon in state taxation when you fill up your tank. Added on top of that are Federal taxes as well. Gasoline is already a very heavily taxed retail commodity in California.
With all the… Read More