California Democrats advance gas tax increase, sales tax hike, and new Mileage Tax proposal despite public outcry for relief — and record setting budget surpluses.
California may have a national record-setting budget surplus of $97.5 billion, but that isn’t stopping Democrats in the state from raising taxes on residents yet again.
Carl DeMaio, chairman of Reform California, says over $300 billion in tax hikes have been introduced as bills in the State Legislature by California Democrats. His organization is opposing all of them.
“While most of those tax hikes won’t be acted on this year, the fact that the Democrats are even proposing more unfair and costly tax hikes is absolutely absurd,” DeMaio says.
DeMaio’s group is also opposing two massive income tax hikes being placed on the November 2022 statewide ballot - one that purports to raise billions in taxes to fund “pandemic response” and another that claims to solve climate change.
“It looks like the Democrats have found new window dressing on their tax hike proposals,” DeMaio said. “It used to be all about ‘fixing roads’ or ‘funding schools’ but I guess they think Covid and the Climate apocalypse are scarier and better for fooling some voters into raising taxes yet again,” DeMaio scoffed.
It’s not just state politicians that are trying to raise taxes. DeMaio and Reform California are tracking and fighting scores of local tax hike measures across the state.
Some tax hikes have already passed and are pending implementation. On July 1st, California’s gas tax rate will increase by 5.6% to keep up with inflation. This comes as the state is setting other national records for its average gas price — which hovers around a shocking $6.07 per gallon.
Assembly Speaker Anthony Rendon (D) and Senate President Pro Tem Toni Atkins (D) said the gas tax increase was necessary because it would secure “critical funds” for the state. Without the increase, the state would lose out on “over $500 million,” according to Atkins.
The extra 2.86¢ per gallon fee will bring the total state gas taxes to $1.14 – 1.29 per gallon.
- Gas Excise Tax: 54 cents per gallon
- Gas Cap & Trade Tax: 40-50 cents per gallon
- Sales Tax on Gas: 20-25 cents per gallon
- Total: $1.14-1.29 per gallon
DeMaio has proposed an immediate suspension in all state gas taxes. By suspending the state’s costly taxes on gas, DeMaio says the average California family would save over $215 per month immediately.
“We’re sitting on a record budget surplus and yet we’re raising taxes instead of, say, returning money to the people?” asked DeMaio. “It’s crazy — and it is taxing our already struggling families to death and forcing them to flee to other states,” he continued.
It’s not just increases in existing taxes that Californians have to worry about. DeMaio also warned about crazy new forms of taxes being created. DeMaio points to an effort in San Diego to approve a new “Mileage Tax” on commuters.
Under the so-called Mileage Tax proposal being advanced, every driver would be charged 4 to 6 cents per mile that they drive. What’s worse, every driver’s mileage would be tracked and reported for billing purposes to local governments — raising serious concerns about privacy.
California Democrats say the new Mileage Tax would raise increased revenue that they want to spend on transit programs, and that it would discourage Calfornians from driving cars by making it more costly.
“It would cost the typical driver between $600 and $900 per year, assuming they drive only 15,000 miles per year,” DeMaio noted. “The Mileage Tax would be the death blow to many families, pricing them out of our state,” said DeMaio.
“If we can kill this effort in San Diego and show Democrats that the idea is radioactive then we have a good shot of killing this crazy tax before it is imposed statewide on all drivers,” DeMaio explains.
DeMaio and Reform California are leading the fight to stop tax increases throughout the state. Join the campaign today to help make California more affordable.
Join the Fight: Stop the Tax Hikes
Photo Credit: Getty Images