Sunday, January 25, 2015 – 11:00 a.m.
Well it didn’t take long for the higher tax shoe to drop in the country’s tax leader, California.
Percentage-based taxes on a falling price per gallon combined with higher fuel efficiency automobiles is hammering government coffers at all levels. The development has politicians at all levels of government scheming on how to fleece taxpayers for more dough.
Recently we penned a story that touched on falling oil prices and the correlation to gas tax revenue. Now comes a story, published in the Contra Costa Times, regarding California considering a tax a mileage driven.
Yes, I said mileage driven!
How about another 1 to 2 cents for every mile you drive per year?
This comes at a time when Congress is considering raising the Federal Gasoline Excise Tax, currently 18.4 cents per gallon, to bolster the depleted Federal Highway Trust Fund.
California already sports the highest gas tax in the nation at nearly 72 cents per gallon. That’s in addition to the 7.5% sales tax. Then there’s also the newly-enacted tax on carbon fuel refiners that amounts to the roughly 15 cents more per gallon built into retail gas pump prices on January 1.
The gas and carbon taxes can be adjusted annually, without voter or legislative approval.
All of the aforementioned state taxes is the reason why retail gas prices in the majority of states are now well below $2 per gallon.
Have California politicians ever seen a tax they didn’t like?
It just never ends.