State of California Now Makes 20x What Gas Stations Do On A Gallon of Gasoline Due to Taxes!
Every liberal who complains about oil profits should be ashamed of California as they are now making 20 times the profit that gas stations are making due to new state taxes!
California’s gasoline tax rose by 12 cents per gallon on Nov. 1, bringing it to nearly 40 cents per gallon. California now has the highest gas prices in the nation.
The average price of regular unleaded gas is now $3.02 per gallon in California. That means that federal and state taxes represent about 20 percent of the retail price. That’s considerably more than gas station owners’ 2-cents-per-gallon gross profit.
It only gets worse: on July 1, 2019, the state tax will go up another 7.5 cents, bringing the combined state and federal excise tax to 65.7 cents per gallon.
But, taxes alone cannot account for California’s high gas prices. In fact, even with the tax increase, Californians will still not be the highest-taxed when it comes to refined oil. That honor goes to Pennsylvania, where residents pay $0.78 in taxes despite the fact that drivers there are paying about 30 cents less at the pump.
Liberals caused damage years ago, when they stopped allowing new and improved refineries. They also passed crazy laws requiring a plethora of different mixes for almost every county in the state. Winter blend…summer blend! The summer blend is roughly 10 cents a gallon more expensive to make the state’s winter blend.
The state’s cap-and-trade program contributes another roughly 12 cents.
One other factor, a “mystery surcharge” that researchers have yet to explain, though they think it adds another approximately 20 cents per gallon.
What do Californians get in return?
Brown and his legislative allies said the money is badly needed to fill potholes and repair rutted roads that lengthen commutes and damage vehicles. It is too bad that the money never reaches the pavement.
A few of the state projects that will get money are known, including an extension of a commuter rail line between the Central Valley and Silicon Valley. Yes, take from the rural areas and give to the liberal cities!
From the beginning in 1923, the stated purpose of the gasoline tax was to build and maintain roads.
The revenue, along with a “transportation improvement fee” and taxes on diesel fuel, is earmarked for California’s Road Maintenance and Rehabilitation Program, which is equivalent to the highway trust funds of other states and the federal government.
For this reason, the tax on gasoline is called a user fee. It is justified as a way of forcing drivers to pay for the wear and tear they impose on public roads. The more miles people drive, the more gasoline they burn, and the more tax revenue flows into the fund.
But the userf ee justification breaks down for drivers of electric vehicles, who do not pay gas taxes at all, and for the owners of hybrid and other highly fuel efficient cars and trucks. The decline in gas tax revenue caused by the shift away from internal combustion engines is stressing the highway trust funds in many states. So, as of 2017, 17 states charge special fees for electric car owners to compensate for the lost revenue.
In reality, motor fuel taxes have been looking less and less like user fees in California and elsewhere because state legislatures periodically raid highway trust funds to pay for unrelated programs. A decade ago, Gov. Arnold Schwarzenegger wanted to use $1.1 billion in Public Transportation Account (money to offset huge shortfalls in general-fund revenue caused by excessive government spending.)
The California legislature responded by creating the Mass Transportation Fund, allowing $637 million to be moved out of the PTA. From 2007 to 2010, $1.3 billion in transportation funds was spent not to build or repair state roads but to finance other programs that were apparently more politically rewarding (i.e., generated more votes) than fixing bridges and filling potholes.
But it is just not taxes on gasoline! Drivers will also pay a new vehicle registration fee ranging from $25 to $175 depending on value of their vehicles.
No wonder California is losing businesses and population by the droves. Sacramento does not care either. California is now the state with the worst poverty levels. It also has the worst gun crime stats in the nation. Life is over-priced.
I moved to Texas from California 4 years ago now. So just where is this crazy place they call California? I ripped that page out of my atlas!