Amid Spiking Gas Prices, Biden & California Democrats Propose Tax Hikes On Energy Suppliers

Amid Spiking Gas Prices, Biden & California Democrats Propose Tax Hikes On Energy Suppliers

High gas prices have prompted governors across the country, in both red and blue states, to introduce bills that temporarily cut state gas taxes or delay scheduled increases. Maryland and Georgia were the first states to enact temporary gas tax cuts and more are likely to follow suit. In California, home to the nation's highest average gas price, Governor Gavin Newsom (D) has proposed sending rebate checks to Californians to help cover heightened fuel costs. As an alternative to Governor Newsom's proposed rebates, California Assembly Kevin Kiley (R) introduced Assembly Bill 1638, legislation to temporarily suspend the state gas tax. During a March 28 committee hearing on Assemblyman Kiley's proposal, members of the Democratic majority gutted Kiley's bill and replaced it with legislative language that would instead impose a tax hike on gas suppliers. As home to what is already the nation's highest marginal income tax rate, highest sales tax, and one of the most overall burdensome tax codes in the country, the decision by Democratic legislators in Sacramento to respond to rising gas prices with a new tax on fuel suppliers was a shock to many. "Let's be clear on what's happening right now," Assemblyman Vincent Fong (R) said