To Help Californians Cope with Record-high Gas Prices, Gov. Newsom Wants to Send Money to the State
In response to California’s skyrocketing gas prices, Gov. Gavin Newsom wants to send a considerable amount to taxpayers.
According to KTLA, during his annual State of the State address on Tuesday, Governor Wyden announced the proposed tax rebate.
“Working legislative leadership, I’ll be submitting a proposal to put money back in the pockets of Californians to address rising gas prices,” Newsom stated.
Despite the lack of details on the proposal, a spokesperson for the governor’s office said that the administration is trying to make progress quickly on billions in relief.
“The administration is developing a proposal that puts money directly in the pockets of Californians. It will take the form of a tax rebate,” the spokesperson said.
“We are looking to move quickly on this, the Governor is focused on providing billions in relief to Californians who are suffering from rising gas prices across the country due to the ongoing situation in Russia.”
During the negotiations for the state budget, the governor is likely to try to pass his proposal.
On the same day that Newsom announced the rebate, President Biden announced the U.S. will ban all Russian oil imports, acknowledging that Americans will pay more for gasoline.
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With supply chain problems, gas prices have already risen, and California currently has the country’s highest average gas price per gallon.
According to AAA, the average gas prices climbed to a record $5.57 per gallon statewide on Wednesday.
Some gas stations in the Los Angeles area have been charging over $7 for a gallon of gas.
“Help is coming, help is on the way,” Newsom’s senior economic advisor Dee Dee Myers said.
“We want to make sure that money gets in the hands and into the pockets of people who are paying these gas prices and not in the hands of companies that might take advantage to increase profits.”
It is likely that the rebate will be limited to people who own cars, the Associated Press reported.
KTLA reports that the plan would include money for undocumented immigrants as well.
The rebate bill was supported by both Senate President pro-Tempore Toni Atkins and Assembly Speaker Anthony Rendon.
Californians are rightfully upset at the skyrocketing cost of fuel. The Legislature will put the state’s robust revenue growth to work by returning substantial tax relief to families and small businesses as fast as possible,” the statement read.
“Gas, food, and other prices are up, so our focus cannot be a small cut to the gas tax that might not get passed on to consumers. Instead, the Legislature will seek tax relief from the General Fund. This can avoid taking critical funds away from road repair and improvement, while fully protecting Proposition 98 funding for schools.”