Did you know that the California legislators are intentionally misleading the public about the 12 cent gas tax hike? Say it ain’t so!
Unfortunately, there is much more to this tax hike than has been told to us, the public, the tax payers, the consumer who will be paying more to drive to work or school.
Instead of me trying to explain it, let me bring in the expert on reading the fine print of our tax increases here in California, Jon Coupal from the Howard Jarvis Taxpayers Association. Jon writes…
“The explanation is a bit complicated but important to understand. It involves a convoluted process known as the “gas tax swap” passed by the Legislature and implemented by the California Board of Equalization in 2010.
The gas tax swap eliminated the state sales tax on gasoline and replaced it with what was supposed to be a revenue-neutral per-gallon excise tax. This made it more legally defensible for the state to repay Proposition 1B transportation bond debt when California was in the midst of recession. The BOE was tasked with adjusting the numbers every year in a “backward looking” process so that California would collect no more revenue from the excise tax than it would have collected from the sales tax had it not been eliminated.
But here’s the kicker: The tax hike just jammed through the Legislature in less than one week by Senate Bill 1 contains a provision that, beginning in July of 2019, adjusts the base excise tax to what it was in July 2010 when the gas tax swap started. Currently, the excise tax on gas is 27.8 cents a gallon. But in July of 2010 it was 35.3 cents a gallon. So as it stands right now, that’s a seven cents per gallon increase, on top of the new 12 cents per gallon tax.
Magically, the 12-cent gas tax increase will likely be a 19-cent-per-gallon increase. And, of course, that entire 47 cents per gallon excise tax (35.3 + 12 cents) will be adjusted annually for inflation beginning Jan. 1, 2020 under SB1. If this seems complicated and hard to understand, keep in mind that the politicians like it that way.
But wait! There’s more!
California’s response to climate change igenerators of carbon emissions can trade emission allowances under an overall cap. California’s regulations already add substantial costs to gasoline even though those costs do not show up as a separate item at the pump.”
And the politicians wonder why we want to separate from this out-of-control, over-regulated, over taxed-state!
California is no longer a state as its flag proclaims, a Republic. Rather, it is a tyrannical regime where they govern the hard-working, family-loving, honest citizens of this once great state with the hard hand of government.
It’s time for 51! We’re ready! We’re willing! We will not give up!
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