California Voters May Roll Back Gas Tax Hike

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California Voters May Roll Back Gas Tax Hike

Thanks to a law signed by California Governor Jerry Brown in 2017, Californians are paying the second-highest gas tax rate in the nation. In November, voters will have a chance to roll that 2017 tax increase back. If they approve Proposition 6, they will also take decisions about future gas tax increases out of the hands of elected officials and put them into the hands of voters.

 

Proposition 6 is a reaction against a 2017 bill that raised the gas tax by twelve cents, increased the tax on diesel, and imposed other vehicle fees. The proposition would mandate that any fuel tax increase or vehicle fee increase must not only be approved by two-thirds of the legislature and the governor (the current requirement), but must also be approved by voters. It makes such approval retroactive to the beginning of 2017, thus effectively repealing that year’s tax and fee increases.

 

Supporters of Proposition 6 say that a gas tax hits poor Californians harder than those with more income. They point out that the revenue from the gas tax and vehicle fees is not earmarked for road improvement, but can be spent on things such as bike lanes. They say that voters, not politicians, should decide if such taxes and fees should be increased.

 

Those opposing Proposition 6 counter that it would deprive the state of billions of dollars needed to improve roads and rail projects. They argue that if people want better roads, then they need to pay higher taxes. They also say that there is nothing in the proposition that would guarantee that gas prices would drop.

 

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