Gavin Newsom says Gas Prices are Skyrocketing. His Solution? A New Tax

As California experiences an historic surge in gas prices, Gov. Gavin Newsom on Friday proposed a new tax on oil companies that would fund rebates for Golden State taxpayers getting squeezed at the pump. Newsom said in a statement that he was working with members of the California legislature to charge a windfall profit tax on companies engaged in the extraction, production and refining of oil. Under the proposal, the companies would pay a higher tax rate on their earnings above a set amount each year. The funds collected would then be directed to California taxpayers in the form of rebates or refunds, the statement said. “Crude oil prices are down but oil and gas companies have jacked up prices at the pump in California. This doesn’t add up,” Newsom said in a release. “We’re not going to stand by while greedy oil companies fleece Californians.”

The governor did not hold a news conference about the proposal so many questions remain unanswered, including his timeline for implementation, what the earnings threshold would be for companies and how the rebates would be distributed. In a joint statement released late Friday afternoon, Senate President pro Tempore Toni Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) said that they are going to work with the members of their respective caucuses to “take a hard look at any proposal to go after windfall profits that oil companies are raking in by bilking consumers.” “We know this is something Californians want action on, and we are acting,” the statement read.

The announcement came just hours after Newsom directed the California Air Resources Board to “take whatever steps are necessary” to permit refineries to begin making and distributing winter-blend gasoline, which is easier to make and cheaper for consumers. As of Friday, California’s price at the pump is an average $6.29 — more than $2 above the national average of $3.80, according to data from AAA. While the price of crude oil has declined, California’s cost-per-gallon has risen by a record 84 cents in the last 10 days. Some of that disparity can be attributed to the Golden State’s 54-cent gasoline excise tax, which is the second-highest in the country, and the state’s rigid environmental regulations. But Newsom said oil companies have “failed to provide” a complete explanation for the unprecedented divergence between California’s price at the pump and those in other parts of the country. The California Energy Commission on Friday sent a letter to refinery executives at Chevron, Marathon Petroleum, PBF Energy, Phillips 66 and Valero to request comprehensive explanations for the recent spike in prices. Legislatures quickly weighed in both in support — and in opposition — of Newsom’s tax proposal. Assemblymember Alex Lee (D-San José) wrote on Twitter, “glad (Gavin Newsom and I agree: Fossil Fuel Corporations are ripping us off and it’s time we redistributed their profits to the people.” Lee unveiled a similar proposal earlier this legislative session. Assemblywoman Laurie Davies (R-San Juan Capistrano), meanwhile, took issue with the governor levying even more taxes in tax-heavy California.

Click here to read the full article at the FresnoBee

Comments

  1. “a complete explanation for the unprecedented divergence between California’s price at the pump and those in other parts of the country. ”

    If it moves, tax it.
    If it votes for me, I deserve it.
    –Guv

  2. Leave!!

  3. The entire Sacramento Mafia Government must go! Too many laws; too many stupid laws; too many stupid people and bureaucrats. It would be great if they would spend some time making California government function for the people. Chances of that happening . . . NIL!

  4. Another IDIOTIC move by Newsom – good for people to point out when he is running for President.
    The reason gas prices are too high is not greedy oil companies, it’s greedy California government who imposes more taxes on gas in California than in any other state. So the solution is to add MORE taxes? Whaaaa? Oil companies don’t pay them – we do!

  5. Son of Billy Jack says

    Well there it is finally. Total motivation for oil companies to spend billions of dollars AGAINST Newsome and all tax raising Politicians in California. There should be a tax on politicians for speaking in public. Program gas pumps to decline the gas cards and credit cards of politicians. That way they will all have to drive the miserable electric cars themselves.

  6. Angry taxpayer says

    You are an IDIOT!!!!
    Pure and simple!!!

  7. Gruesome once again…..shoving business outside of CA! Chevron already reduced staff in CA and relocating to Texas! Get the picture folks?

  8. Start reminding friends, neighbors, family to register to vote in NOVEMBER!! Lowest turnout last time. If you don’t vote, shame on you and stop your complaining… you do more harm not voting!!! Really…..true fact!

  9. We had a chance to recall this elitist “prique” but didn’t. Whose fault was that??

  10. The State idiots (read that as Democrats) want to force a minimum of 33 million EV’s on the streets. There is not enough power in the grid to match that in 20 years.

    They outlaw natural gas peaker plants and say how great they are. (the gas company now has carbon neutral gas)

    There is no fixing Political Ego like Slick. Or Biden Or Harris Or Pelosi Or Shifty Or…..getting it yet?

    OH gee did I fail to mention the gas tax suspension Slick said he backed disappeared and the “rebate” in the mail does little to nothing to help the Working Poor or the Middle Class.

    Why are you still voting Democrat?

  11. Mark Gasster says

    LMAO…..

    The Left will love this idea, then wonder why the price of gas is going up again. They never figure out who really pays those taxes. Gavin knows who pays those taxex!

  12. Gee, this makes sense. More $$ into the hands of politicians with scant sent to us miserable peasants.

    • Steve Douglass says

      Please let’s not forget the oil company’s greed. You think the politicians are the only people getting rich? The oil company’s have had record profits from the gas they sell, they cause fuel prices to rise which in turn causes our food and services rise. If you have half a brain, you will see who is causing inflation and don’t think that it’s all the politicians fault.

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