Neal Kaye writes | Californians already pay the nation’s second highest gas tax at 68 cents a gallon — and now it will go up again in January to pay for a first-in-the-nation climate change law.
“I didn’t know that,” said Los Angeles motorist Tyler Rich. “It’s ridiculous.”
“I think it’s terrible,” added Lupe Sanchez, pumping $4.09-a-gallon gas at a Chevron near Santa Monica. “The economy, the way it is right now with jobs and everything, it’s just crazy.”
When gas prices go up, motorists typically blame oil companies, Arab sheiks and Wall Street speculators. This time they can blame Sacramento and former Gov. Arnold Schwarzenegger for passing a bill requiring California to reduce carbon emissions to 1990 levels by 2020.
http://www.foxnews.com/politics/2014/08/27/california-hidden-gas-tax/
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Some notes: gasoline in California will be subject to California’s Global Warming Solutions Act tax (Schwarzenegger signed AB 32 into law in 2006) which will boost the price starting at $0.12 per gallon and could go as high as $0.76.
Right now, Hawaii has the nation’s highest gas prices, California is second. This new tax would make California the state with the highest priced gasoline and diesel fuel.
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one more reason for business and the middle class to flee California.
Arnold signed the law to try to get along with Democrat supermajority for bigger budget reasons. He should have vetoed in hindsight, but the Dems likely had the votes to override. Still he should have put that booger on their fingers alone.
Flee California? I expect all residents of the USSA to flee to a more hospitable country – like China! Let those bureaucrats who make up fanciful taxes pay them in entirety.
Recent illegal immigrants to the USSA please note: You’re going the wrong way.
The baby boomers need this to finance their pensions?
Great news that the US is going to shackle its economy. Over here in the UK we pay around 9$ per gallon. It affects everything from food distribution to going to see relatives.
What you need is a nice big hike in the prices you pay for energy used in the home and business then we can really start to compete again with you in the world markets.
Welcome to the brave new world.
tonyb
Currently (by Google calculations) we in England pay about $9.80 per gallon.
Those are the low prices because of the supermarket price war over the Bank Holiday Weekend. It’ll rise again shortly.
And you’ll be paying more if you live in the sticks, anyway.
Jesus. Price war?
Here in Oz, they all Jack the price up on any public holiday weekend, the thieving wossnames. Obviously these UK supermarkets just don’t get the idea of cooperating to rip off customers like here.
Are you comparing prices of a real gallon with those of a US gallon?
Good point, I quickly googled so probably a real gallon.
My bad.
Ah, it’s good enough for a rough internet rant.
The Uk fuel price is £ 1.30 per litre of which £0.80 is tax ( combined fuel tax and vat)
There are 3.8 litres to a US gallon and the pound is worth 1.659 dollars
So in US terms the Uk fuel price is $ 8.19 per gallon of which $ 5.04 is tax
Yeah but in California a high percentage of people commute a couple of hours daily.
http://www.doctorhousingbubble.com/commuting-costs-california-car-costs-real-estate-and-commuter-culture-california/
“A 40 mile one way commute is likely costing you $11,100 per year.” At $8.00/gal were talking $22,000/y
Yes, but those in California who voted for the administration can use their promised $1500/year Obamacare medical insurance saving to offset their higher fuel costs. Oops that never happened.
It may not make sense to our friends from other countries, but the tax on gasoline and diesel varies significantly from state to state. See below for each State:
http://www.api.org/oil-and-natural-gas-overview/industry-economics/~/media/Files/Statistics/StateMotorFuel-OnePagers-July2014.pdf
The gasoline tax in NJ is about half that of California at 32.9 cents/gal and we do not have to pump our gas, in fact it is illegal.
Just for the heck of it, let’s look at “…A 40 mile one way commute is likely costing you $11,100 per year.” At $8.00/gal were talking $22,000/y…”.
I assume these are pre-income tax numbers, so given a CA marginal tax rate of about 40%:
o $11,000 after-tax requires a pre-tax $18,333
o $22,000 after-tax requires a whopping pre-tax $36,666
In the Brave New World all will be equal and since we here in the “colonies” have further to drive and you blokes don’t have as far to go, petrol prices will be adjusted according to a new International Standard. If CA is our most expensive fuel at $4/gallon and the US is ~37 times larger in area compared to Great Britain then you all will be getting a UN mandated tax to increase your cost to £23 p56 / per litre to pay for the luxury you have of being closer together. Aren’t you glad you brought that to the attention of the politicians and bureaucrats?</sarc>
your lucky in Australia you will pay from $1.60 to $2.00 a LT
Just remember that the EU average price is 2x that of California.
Many people travel 100+ miles to work every day.
The state is also grounding thousands of big trucks because their engines are outdated. I foresee the capital building becoming a truck parking lot in protest. Park ,lock, and leave. (Already in the works)
I read awhile back where some of the politicians in California were saying that low income people couldn’t afford the new carbon tax on gasoline. It seems their solution was to spend most of the money generated from the tax ( I assume after they take a generous cut for the state) to refund back to low income people in the form of tax credits.
So they want a tax to give to low income people that can’t afford the tax. Wouldn’t it be easier just to not have the tax? Oh wait, that would mean they wouldn’t get their cut of the loot.
There is no tax on Social Security. If that is someone’s sole source of income (and for many people it is) how can they benefit from a tax credit?
they get a refund check when they file their 1040. same for Earned income tax credit. A low income family of 5 can pay $2000 in tax on W2 wages and stll get a a $4000 refund. It’s called redistribution.
Up to 85% of Social Security is taxed depending on other sources of income
As Vice President, Al Gore went to the Senate to end the deadlock by casting the deciding vote which applied the income tax on 85% (versus 50% previously) of Social Security Income. In my opinion the 50% was probably fair for those whose employer paid matching 50% of their SS tax.
And now you know the real reason for energy taxes. Wealth redistribution. Spread the wealth. They won’t be satisfied until we are all equally destitute.
And while the bureaucrats perform this redistibution plenty of the money stays with them for their fat salaries and enhanced pensions – this is exactly how we ended up with a bloated state in the Uk
Always seems to go pretty well for the Congress critters…
Hey Richard. That sounds like Gordon (Pension snatcher) Brown’s Tax Credits here i the UK – Tax all the workers, even the low paid, then make them claim it back! After taking a cut for all the civil servants that had to be recruited to administer it, that is……
It does sound similar Joseph except for the nickname. The Brown in California is known as Governor Moonbeam, who was preceded by The Governator. The politics there read like a bad Hollywood script similar to The Producers.
UK petrol TAX is $5 per US gallon.
Absolutely no sympathy here.
US consumers less than just about anywhere else in the world for gas.
Venezuela is an obvious exception, where the price of gas is only 15-20 cents per US gallon. The subsidies this costs the state are just another factor, in addition to goofy economics and politics, that are helping to bankrupt this nation.
So since you pay are artificially high price you want everyone to?
How many UK’s can fit in California, and how far do you commute?
I love how some people actually believe that being beaten less by your master is some kind of blessing.
I’m guessing you believe that everyone’s taxes should be obscenely high?
For what it’s worth, you have my sympathy. Instead of congratulating our capacity to keep at least some of our taxes low, we in the USA are again at fault for caring about the economic impact that high fuel prices play in the welfare of our poorest citizens. It’s no wonder we still price the stuff by the gallon.
The government gets more than the Gas Station owner, or the oil companies, and you pay. The commodities go up as a result…Food, clothing – everything…
So the summary opinion so far of UK, EU, and Australia residents, is you haven’t been shafted by your government(s) anywhere near as badly as we are by ours, so stop whining and take it.
This is as opposed to asking the tough question of why you continue to allow your own governments to get away with it.
We do occasionally. See list of fuel tax protests:
http://en.wikipedia.org/wiki/Fuel_protests_in_the_United_Kingdom
However, the UK Government invented the fuel tax escalator that just raised tax a little every year until the next public disorder – then there was some let off until next year when they tried again.
As everything needs to be right to tip people over the edge, we kept going up.
The escalator has been paused for a while due to other pressures on UK household income. But the tax has been empirically pushed to the limit, already.
The fuel tax escalator is actually a good case study in how to raise taxation.
SOME UK, European Soviet Union, Australian residents, Kadaka. I’m in UK and believe in as low taxes as possible – reduce the state and save billions, is my motto.
Leigh says: August 29, 2014 at 2:02 am ….. “And Dudley, reducing CO/2 emissions for what?
CO/2’s up and temperatures are down. If there is no warming, why are we reducing CO/2 with a tax?
The original excise on petrol was supposed to pay for road construction and maintenance. So why add another one? Take away the taxes (excise, CO/2 and GST) and petrol is cheap.”
As I pointed out, you need high taxes on fuels to pay for the roads. The current excise which is supposed to pay for the Interstate and other highways are totally insuffient so that the Highway Trust Fund has run out of money. With the proceeds from this tax the California government can provide money to cities and counties to help them with repairs to roads, bridges, etc.
The reason that current taxes have not done what they are supposed to do in fixing roads and bridges is that governments (of all colours) have been frightened of the voter reaction if fuel excise is raised – just see the comments on this site. So the fuel excise has been kept down. And add the fact that as traffic grows, more and more maintenance is needed. And to top that, the real value of the excise has decreased due to inflation. Your dollar of 25 years ago can probably now only buy what used to cost 25 cents. Check CPI changes over the last 25 years.
So the needed tax increase is hidden in a “carbon reduction tax”. Like it!
Dudley, I wasn’t aware that the money would be used for road projects. I know that Los Angeles County and San Bernardino County have instituted 1/2% additional sales tax in the past, which they have used for road projects in lieu of raising the gas tax.
tango says: August 29, 2014 at 12:19 am “your lucky in Australia you will pay from $1.60 to $2.00 a LT”.
Actually the local price has recently ranged from 142.7 to 163.9 cts per litre. Excise is 38.7 cents per litre, and stupid politicians are screaming about an increase of about 1.0 cents per litre.
Just think that while the tax is nominally going to assist you in reducing CO2 emissions, what it will really do is to provide money to pay for the roads you have. Think – could be worse – our local rates or sales taxes could have increased instead. You’ll just have to take – and enjoy – public transport. Thank your lucky stars that SF still has its tram system, and Los Angeles is busy putting back light rail and streetcars, while San Diego and Sacramento aready have light rail systems.
Aussie prices at AUD $5.60 / gallon (around USD $5.30) – if you think the tax the government takes is really going on anything other than feathering their own nests, and paying for a ridiculously bloated government, you should have a look around our capital city Canberra sometime. Acre after acre of brand new housing estates.
Eric, at $1.50 litre multiplied by 4.55 ( litres in 1 gallon)
I reckon its closer to $6.80 a gallon.
About in the middle of the US and England.
And Dudley, reducing CO/2 emissions for what?
CO/2’s up and temperatures are down.
If there is no warming, why are we reducing CO/2 with a tax?
The original excise on petrol was supposed to pay for road construction and maintenance.
So why add another one?
Take away the taxes (excise, CO/2 and GST) and petrol is cheap.
I’m assuming US gallons – 3.7 litres = 1 US Gallon.
UK Gallons are 4.5 litres.
Don’t worry, I had to look it up too 🙂
I’m so confused.
Don’t forget about the GST (consumption tax or VAT) on top of the excise tax. And there’s there is “world parity price tax” on local production and then there’s the taxes the oil companies and forecourt operators pay on profits and earnings.
Today Melbourne prices were $1.38 a litre for unleaded. which is around US$ 5.24 for a US Gallon. Less for Ethanol.
$10.25c here in New Zealand a gallon.
Gesture politics at its worst. Whilst it will have no effect on CO2 it will weaken California’s economy, drive employers away and cost jobs.
It is hard, but not impossible, to find an honest politician but even some of those seem to have been inveigled into the alarmists’ parallel universe where the GIGO from models is more real than real-world factual data.
Far too many of the world’s poor and starving suffer daily at the hands of these self-glorifying and self-styled ‘Eco-warriors’ who put their religious belief in AGW ahead of any other.
US $1.29 a litre in China, but it covers annual vehicle registration as well. The more you drive the more you pay as road tax. I don’t drive that much so I save a bit.
I moved from UK to US in 1998. At that time in California gas was $1.20/USgal. Up the road in Washington State it was under $1/USgal. I saved around $250/mth out of my salary, almost enough to cover groceries. I moved to New Zealand in 2013 and when I left gas cost 4x that (+$4/USgal). I now pay around $10/USgal equiv ). I just had to cut down on the groceries!!:(
You never ever cut down on food. Your brain needs the energy to think it’s way out of a problem. Unless, of course, you are really fat. That’s another problem.
We’ll, I do agree. However, I still need to travel to work to earn a living before I can even think about what’s left for groceries. Maybe I need to think about alternatives. I have a neighbour who chops down his trees to keep warm. I could follow his lead as I see a lot of folks doing the same. Need to get in quick as the local council is looking to ban the new install of wood burning stoves!!!
I remember my grandfather having a fit back in the mid 70’s when he couldn’t find a single station that was selling gas for less than $0.25/gallon.
[Snip. Invalid email address. ~mod.]
I remember going on vacation out through the Western half of the US in the early 70’s and saw 10cent/gallon gas wars in TX, OK, NM and AZ. When I got my license gas was 32 cents a gallon… less than half of what CA’s new tax is!
MarkW
I remember in California gas was 23 cents, unless you wanted to upgrade to Ethyl, which was 27 cents.
when the oil embargo hit in the mid 70’s we were paying 50 cents, that is if you wanted to wait in the long lines that would stretch for blocks around the station.
Gas tax? Talk about regressive! You have people with the carbon footprint that a 10,000 square foot house implies, and this impacts them nearly none at all, on a percentage basis. Meanwhile the brunt of the tax (percentage-wise) is hoisted squarely on the shoulders of those people who invariably have the smallest carbon footprint – – all in the name of reducing CO2! Congratulations on that logic. That logic is nearly as good as the logic that says stop them from using coal, so they go and cut down forests for fuel – – for the sake of the environment.
In a Way administration, that noise would get turned around.
Those who run the asylum have such great responsibility that they are entitled to all those luxuries that they expect the rest of us to pay for.
In Australia, taxes are currently about USD 2.30 per gallon.
In Australia, taxes are currently about USD 2.30 per gallon.
the US and Cali get their fuel so much cheaper than Oz.
One US gallon here costs about $6.45 in AUD, or $6.05 USD.
We wet-dream $4 / gallon.
68 cents per gallon? Call that a tax?
Here in the UK we pay fuel duty on our petrol, which more than doubles the cost of the basic product. We are then charged value added tax at 20% on the total cost, i.e. we are being made to pay a tax on a tax.
Now that’s a government who knows how to screw the driving public…
As I said below, “screw those taxpayers like you mean it!”
There have been plenty of “climate change” predictions over the years and most have eventually been documented as flops. Now I’m curious. Has there actually been a single one that has taken place? “Climate change” activists are welcome to contribute. Please.
Arctic ice has declined.
Glaciers are (in the main) shrinking.
The world has warmed since the industrial revolution started.
It’s warmer now than any other time on record.
Yes, I know the Little Ice Age (and the real one) accounts for all of that but the AGW fans do have some real world observations that fit their theory.
(Is this on topic).
On topic, but off message 🙁
World sea ice is increasing
Some, not all, glaciers are shrinking (Rebound – whatever that means- from the LIA)
The world has warmed due to the rebound from the LIA (see above)
The temp records are fixed – proved beyond dispute many times here on wuwt – including the 2012 ‘gamechanger’ http://wattsupwiththat.com/2012/07/29/press-release-2/
It all a matter of keeping your focus 😉
Thanks.
I though the prediction was that Arctic ice and glaciers would have disappeared by now.
Backwards assertions are not predictions.
I would reply but according to past predictions my home is on the bottom of the Atlantic Ocean and my computer has shorted out from sea water intrusion.
The state has substantial public debts. If they claim the tax is there to help the environment, then less than 100% of tax payers in the state will be angry. So it makes sense.
Unless the CA tax excludes the trucking industry, all semi-trucks will have to pay the tax. Most use the International Fuel Tax Agreement (IFTA) along with a “base” tax jurisdiction. See CA’s FAQ if you need more:
http://www.boe.ca.gov/sptaxprog/mciftafaqs.htm
Simply put, everything in CA will increase in price and not just the fuel put into the family car. One unknown is whether campanies that do lots of online sales (think Amazon) will start seperating shipping costs by state. If they don’t, then that means non-California residents will be footing part of the bill for the California carbon taxing silliness. For example, will Prime Amazon customers pay more or will Amazon eat the difference?
Over time residents will start demanding higher salaries so that they can afford to buy groceries again. This will force companies to start charging more to make up for the new expenses.
As a result more companies will decide that the cost and hassle of being in California just isn’t worth it.
If you look at Amazon Prime pricing carefully, you will discover that it is (at a minimum) higher when you log on to your Prime Account than when you shop annonymously…. I would think that the price that appears on your Prime account will soon factor in higher delivery costs by location, if it doesn’t already.
But, but… How else is the Governor going to pay for his bullet train thingie?
http://dailycaller.com/2014/06/16/calif-to-use-cap-and-trade-to-pay-for-high-speed-rail/
I looked at that link and I saw a Quote from California state senator Bob Huff. “You’re enacting policies to make California unnecessarily expensive, drive people into poverty and then propose new government programs to subsidize their life in poverty”.
We have driven up the price of fuel. Now let’s subsidise it!
Some folks can only learn by taking lumps on the head. So we’re beginning to see lots of lumpy heads but still no learning. Hopefully the learning will start soon.
This is fantastic. Anything I can do to further California’s insanity just let me know. Petition drives…whatever. The anti-civilization legislation that is routinely enacted in that state is mind numbing and still the Boxers and Pelosi’s and the boneheads in Sacramento keep getting reelected. Nothing better than bankrupt ideology on display. California gets the leaders they deserve. Good for you California save the planet.
A solution that won’t work, for a problem that doesn’t exist.
This is what the government calls a win-win tax. If CO2 levels drop as a result of this tax then the primary goal has been reached. But if CO2 levels go up and tax revenue also goes up then the secondary goal has been reached. Arnold was brilliant.