Governor Gavin Newsom recently proposed an $11 billion gas tax rebate, considering recent gas spikes throughout the state.
Many families feel the financial burden of the rising gas price, with the average gas price within the state reaching $5.85, according to AAA. Adding to the stress, nationwide inflation has caused dramatic increases in the cost of housing and other necessities.
To ease the impact of increased prices, Gov. Gavin Newsom proposed an $11 billion tax rebate that would send individuals $400 for each car registered under their name. However, that’s not all.
In addition to the $9 billion in tax refunds, the proposed plan includes:
· $750 million towards public transit grants allowing passengers to ride public transportation fare-free for three months.
· $600 million to pause a portion of the sales tax on diesel fuel
· $523 million to stop the inflationary adjustments to gas and diesel tax rates.
The gas tax refunds will be given to every California registered car owner. The cards issued will include $400 to every driver in California with a car registered in their name. In addition, people who own multiple vehicles will receive up to $800.
However, his proposed plan, which has yet to be approved, is already facing heavy criticisms from democrats in California.
Environmentalists claim that the bill undermines climate goals by encouraging drivers to drive more, causing more carbon emissions and increasing reliance on fossil fuels.
California director of Food and Water Watch, Alexandra Nagy, says, “The only way to bring lasting economic relief to Californians is for Gov. Newsom to initiate a just transition away from fossil fuels immediately.”
Republican opponents to the bill say that instead of sending a rebate to Californians, the state should suspend the 51-cent gas tax, the highest of any state.
Earlier this month, Republican California lawmakers proposed a bill to suspend the gas tax in response to the high prices; however, they didn’t get enough votes for the bill to pass.
The governor’s plan may also come against opposition from leaders of the State Assembly, who have proposed their own relief package for people across the country.
According to an article from the L.A. Times, “The plan from Senate President Pro Tem Toni Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) centers on a $200 rebate for each taxpayer and dependent, and excludes the top 10% of earners in the state.”
While not yet approved, Newsom’s plan is still being negotiated with the California legislature. Sources from the Office of Governor Newsom say the first of the payments are expected to be sent in July.