Democrats' Cap-and-Trade Bill is Another Massive Gas Tax in Disguise

California Drivers Will Soon Pay at Least an Additional $0.63* per Gallon for Politician’s Pet Projects
Tuesday, July 25, 2017

The Governor today signed Assembly Bill 398 (Eduardo Garcia, D-Coachella), an onerous measure that will raise an additional $0.63 per gallon in taxes on California drivers.

In total, drivers will be forced to pay an additional $0.82 per gallon once the gas taxes passed earlier this year – which include the largest car and gas tax in the state’s history – take effect. 

“Economists, and even the Governor’s own financial experts, are predicting an impending economic downturn,” said Senator Jim Nielsen (R-Tehama), Vice Chair of the Senate Budget Committee. “How can the Governor and other Sacramento politicians take money away from everyday Californians when they know of a looming recession?”

“Families’ weekly budgets will take a heavy hit once drivers find themselves paying an additional $10 – at least – each time they fill up.

“Will these taxes be repealed if, and when, our economy slumps and Californians begin to lose their jobs?”

In April, the Governor signed Senate Bill 1, the largest car and gas tax in the state’s history. SB 1 levied a $0.19 per gallon increase, in addition to other taxes, to generate $52 billion based on promises by Sacramento politicians that they would invest tax monies in the state’s roads and highways. In reality, the measure included loopholes to allow for money to be diverted to the beleaguered high speed rail, park bathroom maintenance and land purchases for animal travel, among many other pet projects.

Below is an estimation of how much more consumers will pay at the pump each time they fill up their car tank, based on top selling cars driven by Californians:

Cap-and-Trade Tax ($0.63*) + SB 1 Gas Tax ($0.19) = New Costs to Drivers ($0.82)

Compact Car**                  Midsized Car**                Sports Utility Vehicle**
Honda Civic                       Honda Accord                   Toyota Rav4
12.4 gal capacity***           17.2 gal capacity***          15.9 gal capacity***
$10.17 more per tank       $14.10 more per tank      $13.04 more per tank

*Based on a March 29, 2017 calculation by the Legislative Analyst Office of the estimated gas tax increases per gallon based upon a Cap and Trade allowance price scenario, known as the Allowance Price Containment Reserve price, or price ceiling.

**California Auto Outlook, a publication of the New Car Dealers’ Association, Volume 13, Number 2.