Will California get more inflation support payments?
As gas prices in the Golden State continue to rise, contrary to other trends seen around the country, Gov. Newsom has proposed a windfall profits tax on oil and gas companies. The proposal would place an additional tax on revenue earned beyond what was seen last year. This tax would account for increased costs faced by customers, and the total accumulated by the state would then be redistributed to drivers.
Newsom’s office released the plan after a report found that “California consumers paid $2.61 per gallon higher gas prices than the average US price as of October 4, 2022.” The office even accused oil refiners of slowing production to create shortages that drive up costs.
“Five refiners—Chevron, Marathon Petroleum, PBF Energy, Phillips 66 and Valero—make 97% of the state’s gasoline. They are in a position to restrict gasoline supply to drive up gas prices. They have consistently restricted supply and artificially driven up their prices significantly in excess of their costs.”
There is no word on when the legislature may vote on the bill, but many in the Golden State support the measure, as prices at the pump reach over $7/gallon in some areas. The divided created by the windfall profits tax could help families next year, but for many the relief could not come fast enough.
Learn more about California’s inflation relief checks
Source link
