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West OC Times

Monday, October 7, 2024

Gas tax hike adds pressure on California families amid rising living costs

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Rep. Michelle Steel, District 45 | Official Website

Rep. Michelle Steel, District 45 | Official Website

California families face another financial burden with the latest increase in the state gas tax, now at 60 cents per gallon, making it the highest in the nation. This hike comes as families begin their summer travels.

The increase is part of a long-standing policy to expand state government funding through taxpayer contributions. Despite a 2002 voter mandate requiring gas taxes to be used for transportation needs, Sacramento politicians replaced the traditional gasoline tax with a state excise tax on gasoline. This change allowed for annual increases, with proceeds often directed towards various projects rather than essential infrastructure.

Southern California residents already pay more in gas taxes than any other state, totaling 78 cents per gallon when combined with federal taxes. The current average price of gas in California is $4.79 per gallon, compared to the national average of $3.50 per gallon.

Governor Gavin Newsom has opted not to suspend this year's gas tax hike, which took effect on July 1, despite calls from some officials and constituents facing high living costs. A letter from California’s Republican delegation in Congress urged Newsom to halt the increase due to the financial strain on Californians.

A recent report from the Joint Economic Committee highlighted that the average California household is spending $300 more per month than last year to maintain their standard of living, with significant increases in food, housing, energy, and transportation expenses.

Critics argue that rising gas taxes and high income and business taxes are driving small businesses and middle-class residents out of California. They also point out that Governor Newsom and legislative leaders successfully removed the Taxpayer Protection and Government Accountability Act from this fall's ballot through legal action. This act would have required voter approval for any new or increased state taxes.

Michelle Steel represents California’s 45th congressional district and serves on the House Ways and Means Committee. She continues to advocate for relief at the pump and opposes policies she believes exacerbate inflation's impact on her constituents.

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