For over two years, the gas prices in the United States, and more specifically California, have risen at an exponential rate. Now, as the national average lowers, Californians are wondering: why are our gas prices still so high, and what is Gavin Newsom’s plan?
In 2020, the national average gas price in the United States dropped below $2 due to the lower demand for gas at the hands of COVID-19. This made the shock of high gas prices in the following years even more severe. Now, in 2022, the national average is up to $3.82, and $4.80 in California.
This price difference is primarily due to the higher taxes and fees that Californians must pay. In California, the extra costs add up to an extra $1.18 per gallon. According to calmatters.org, California Governor Gavin Newsomplans to introduce a “Windfall Tax” on gas companies, capping their profits at a certain amount. Any company that profits above this ceiling will be taxed at a much higher rate. The revenue will then be returned to the taxpayers in the form of rebates.
Newsom has already enacted the middle class tax rebate. This is a one time payment ranging from $200 to $1050, depending on if you are single or filing as a couple and on income level. Those making below $250,000 as an individual or below $500,000 as joint income earners will be eligible for at least some of the payment. Of the $97 billion surplus which California had, $9.5 billion will go to the rebate.
These actions attempt to face a part of our economic crisis, which consumes the mind (and wallets) of many Califonians today. However, the seemingly temporary nature of the middle class tax refund leaves more to be desired.
The Feather
