CA Logic: Raise Gas Taxes, Then Demand An Investigation Into Why Gas Prices Are High

by | Apr 25, 2019 | Headline News | 18 comments

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    California is home to some of the most power-hungry politicians on Earth. These people actually hiked the gasoline tax, and are now demanding an investigation into why gas prices are higher in California than elsewhere in the United States.  It would be sad if it wasn’t so insane.

    California Governor Gavin Newson is demanding an investigation into why the state’s gas prices are so high. But as Reason points out, it’s not all that difficult to see what that California politicians are the culprit.  In fact, the reason the gas prices are high is that Newsom (and other politicians) raised taxes on gasoline.

    As lieutenant governor, Gavin Newsom supported a 2017 bill increasing the state’s gas taxes. When running for governor in 2018, he opposed a ballot initiative that would have repealed that same increase, reported Reason. But like all politicians, Newsom is unwilling to admit that he and his comrades in the California government have caused the problem. So begins the finger-pointing. The governor sent a letter to the California Energy Commission (CEC) on Tuesday demanding that the state agency “investigate” California’s roughly $4.03 per gallon gas prices, which are currently the highest in the country. Those prices are also well above the national average of $2.86 per gallon.

    “Independent analysis suggests that an unaccounted-for price differential exists in California’s gas prices and that this price differential may stem in part from inappropriate industry practices,” wrote Newsom in his letter to the CEC. “These are all important reasons for the Commission to help shed light on what’s going on in our gasoline market.”

    California currently imposes the second-highest gas taxes in the country. A state excise tax currently adds $.417 per gallon (almost 42 cents per gallon), and that rate that will increase to $.473 (47 cents per gallon) come July. But that’s not all. On top of that tax, the state imposes a 2.25 percent gasoline sales tax. There’s more. California has also added a low-carbon fuel standard and a cap-and-trade scheme for carbon emissions which together already increase the state’s gas prices by $.24 per gallon above the national average, according to a 2017 state government report.

    The worst part is that Newsome isn’t the only problem causer asking for blame to shifted to “inappropriate industry practices” as opposed to their gas tax hikes. In January, 19 state legislators (17 of whom had voted in favor of that 2017 gas tax increase, while the other two had only entered office in 2018) sent a letter to State Attorney General Xavier Becerra, in which they demanded that the state’s Department of Justice (DOJ) investigate the “unexplained gasoline surcharge” that was estimated to cost Californian families $1,700 a year.

    Yeah. It’s a real head-scratcher.

    Even someone who understands just the basics of economics knows that high levels of taxation and regulation and a lack of competition in the state’s fuel sector are not mutually exclusive explanations to the high gas prices.  Government fees and red tape often have the effect of squeezing out marginal producers and retailers (eliminating competition) giving remaining firms greater ability to raise prices.  It’s called supply and demand. The demand remains but much of the supply is gone. Once the competition (supply) is gone by way of taxation and regulation, the companies that remain can jack the prices up as high as they want.

    California’s government is not doing its residents any favors when it comes to their policies.

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      18 Comments

      1. RightIsMight

        One thing about the Democunts… they just lurve a good investigation!

        • Anonymous

          And just like the mueller witch hunt, the Dems are the real culprits

      2. Norrak

        Duh, sounds about par for California.

        • Genius

          CALI…………..GULA see the resemblance?

      3. CAaT

        Use Dissenter, this comment section sucks.

      4. CAaT

        Everyone should use Dissenter, this comment section sucks big time.

      5. Justin Case

        Dissenter is the way.

      6. mike g

        Something terrible is in the water the politicians are drinking out West that has them out of touch with reality. Delusional for sure.

      7. Honeypot

        Aristotle, philosopher, politician, orator, scientist and incredible genius, considered by many as the world’s most brilliant man, said that if you will not involve yourself in politics you will be ruled by your inferiors.

        .

      8. The Deplorable Renegade

        It’s California. That says it all.

      9. buttcrackofdoom

        i’m STUCK here in calipornia…..in more ways than one!

      10. Jim in Va.

        California,where used car salesmen are more respected than their politicians………

      11. Traitor Hator

        There are two kinds of stupid. Regular stupid ,and California stupid, California stupid is a special kind of stupid?

      12. Anonymous

        This is how communism/leftist, works.
        When are you going to stand?

      13. Brian

        The politicians get away with this stuff because the voters let them get away with it. They pass the high taxes and the costly regulations and then try to appease the voters by blaming it on the petroleum industry. If the voters ask, they say “We’re investigating the high costs. They already know why but want to blame the corporations. They do it because the voters allow them to get away with it. The system is broken and people are voting by leaving and/or getting high. No wonder that the part of the state that knows what’s going on want to form a new state and abandon the large cities.

      14. Former Commifornian

        Left Commifornia in 2014 and have never looked back. With the true definition of INSANITY running the state, calling it a cesspool is a compliment.

        Never mind the direct taxes you see being forced upon the sheeple. It is all the indirect taxes that get you.

        Very good article. Just a glimps of the insanity that is Commifornia.

      15. Brian

        California Energy Commision is like all political commissions;they don’t want to offend anyone in power. They’re going to spend a lot of time and effort in their response so that it says the obvious in as inoffensive a manner as possible. How do you say something that is obviously true without actually saying it? Should be an interesting response!

      16. refugee from cali

        state mandated special gas blends at a higher cost, 2nd highest gas taxes in the nation only going higher, tax refineries with carbon taxes, state sales tax per gallon, local sales tax per gallon and they’re only going up.
        Now the politicians who enacted this nonsense are going to investigate it to find out why the prices are so high?
        Really?
        Ask them to get rid of those high taxes and fee, which they enacted and watch what they say or how fast they will act.
        They’ll just shut up about the problem and keep fleecing the people.
        That’s why I voted with my feet

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