California must stop spinning its wheels on gas price relief
Gov. Gavin Newsom and state legislators have been spinning their wheels for months on gas price relief. They should get the vehicle moving or abandon it.
Maybe head in a different direction.
Rather than trying to ease motorists' pain at the gas pump, the governor and lawmakers should spend the state's tax surplus primarily on infrastructure projects.
There's a long list of worthy candidates:
Water facilities as we cope with drought. Wildfire prevention and fighting. Dwellings for homeless people. Road repairs. Passenger rail service. More charging stations for electric vehicles. Upgrading the electricity grid to carry renewable energy.
Senate Democrats did propose spending an extra $30 billion-plus on various infrastructure projects over the next few years, particularly targeting water, wildfires, climate, homelessness, affordable housing and education. Good for them.
They also proposed a lot more social spending — including for early child care, healthcare for immigrants living here illegally and higher CalWORKs benefits. But nothing specifically for burdened motorists.
Both Senate leader Toni Atkins, D-San Diego, and Assembly Speaker Anthony Rendon, D-Lakewood, oppose providing gas pump relief, either by suspending the fuel tax or sending every vehicle owner some cash.
The two legislative leaders want to give every taxpayer $200 — plus $200 for each of their children — regardless of whether they own a car. But only if a family makes less than $250,000 a year or an individual earns under $125,000.
Newsom also objects to suspending the car tax. There's no guarantee oil companies would pass the savings on to motorists, he and legislative leaders insist.
Instead, the governor has proposed sending each registered car owner $400 — up to $800 for more than one vehicle. But he's willing to compromise with lawmakers by excluding owners of expensive cars.
OK, but all this exclusion of the upper middle class and wealthy seems unfair and wrongheaded — another thumb in the eye by Sacramento. They pay by far the highest state income tax rates in the country. And two-thirds of the state general fund is fueled by income taxes.
Senate leaders are projecting a $68 billion general fund surplus thanks to upper-income prosperity.
Legislative leaders contend 90% of taxpayers would benefit from their $200 so-called rebates. But that would exclude the top 10% of earners who supply 81% of the general fund money to be rebated, according to the latest state figures. The top 5% kick in 70% of the fund.
Sure, upper-income Californians don't need the money financially. But the Democratic leadership should consider returning a few bucks to boost morale and signal they're part of the loop, not just cash cows for Sacramento. Polls show that increasing numbers of California voters are griping about high taxes, making them even more hostile toward the state and its government.
Lower-income people are hurting as inflation drives up prices — inflation partly caused by the feds' $1.9-trillion American Rescue Plan during the pandemic. Sacramento also kicked in $12 billion in “rebates” for Californians earning less than $75,000.
The hook for plying voters with tax breaks or cash has been the record gas prices. California has the nation's highest, averaging around $5.70 a gallon for regular.
In his March 8 State of the State address, Newsom said he wanted “to put money back in the pockets of Californians to address rising gas prices.” As I wrote then, don't get excited about receiving anything — at least soon.
To their credit, the governor and Legislature have substantially increased spending on infrastructure in recent years, notably for water, homelessness, wildfires and transportation. But much more should be invested and faster.
Personally, I think most of us sound like spoiled crybabies on gas prices. We've still got some of the lowest in the world. Western European motorists pay more than $8 a gallon. And they're hit with higher fuel taxes.
Gas prices soared when Western nations sanctioned Russian oil exports. Ukrainians are fighting to save their country and their lives from Russian butchers, and we're moaning about paying a buck more for gas.
But I'm the last person who should be pooh-poohing the pump pain. I broke a leg six weeks ago and haven't been driving. My pain right now comes from watching Sacramento politicians spinning their wheels on a questionable roadway.