California’s Proposed Tax Rebate to Counteract Rising Gas Prices

Kate De Prima, Staff Writer

As gas prices increase across the country, many are struggling or unable to pay for their needed fuel. According to the American Automobile Association, California is experiencing the steepest rise in prices with the average price of gas in Mar. being over $5.70.  Luckily, amidst multiple proposals, California lawmakers are getting closer to reaching a solution. 

Following the trend of other states, Republican lawmakers proposed a gas suspension on Mar. 14. They urged that gas tax be suspended, which would pause the state’s tax on gas prices. As Republican assembly member Kevin Kiley puts it, “To cut the state gas tax in its entirety, that’ll save Californians 51 cents a gallon. Now, that’s not going to bring gas prices down to reasonable levels by any stretch of the imagination. But it’ll help.”

Opponents of the gas tax suspension proposal felt that a better solution could be found, which reported by ABC10, led the proposal to only receive “18 votes out of the needed 54.” 

Then, on Mar. 16, Democratic lawmakers proposed that Californians would receive a $400 tax rebate to aid with inflated gas prices. Anyone would be eligible for the rebate, regardless of income or marital status – meaning that a married couple would receive $800. 

According to The Los Angeles Times, on Mar 18 the proposal has since been adapted: Californians would receive a guaranteed $200, and that number could increase based on how many dependents (a person who relies on another as a main source of income) a household has. For example, since a single tax filer would receive $200, a family of 2 tax filers and 2 dependents could expect to receive $800. 

An income limit was also added, officially excluding households making over $250,000 from being eligible. This would remedy the issue of anyone being able to receive the rebate, allowing more money to be spread across the board, reaching those in more dire financial situations. 

Lawmakers would like residents to receive the rebate as soon as possible, but the proposal has yet to be negotiated with higher legislative leaders. On a positive note, Governor Gavin Newsom is in favor of aiding Californians against the rising prices. In his recent State of the State speech, Governor Newsom announced that he was “working with legislative leadership [to submit]…a proposal to put money back in the pockets of Californians to address rising gas prices.”

It’s hard to predict if the rebate will pass, especially when considering how many different solutions have been proposed. But all lawmakers – no matter what party – can agree that Californians are in need of some aid; it will just take some negotiation to figure out what exactly that aid will look like.

 

Photo courtesy of USCANNENBERGMEDIA.COM