Posted by Tina
Our friends over at the State of Jefferson project got to wondering what California lawmakers really had in mind when they passed an increase in gasoline taxes. They consulted with Jon Coupal from the Howard Jarvis Taxpayers Association who had a few eye opening facts to share:
“The explanation is a bit complicated but important to understand. It involves a convoluted process known as the “gas tax swap” passed by the Legislature and implemented by the California Board of Equalization in 2010.
The gas tax swap eliminated the state sales tax on gasoline and replaced it with what was supposed to be a revenue-neutral per-gallon excise tax. This made it more legally defensible for the state to repay Proposition 1B transportation bond debt when California was in the midst of recession. The BOE was tasked with adjusting the numbers every year in a “backward looking” process so that California would collect no more revenue from the excise tax than it would have collected from the sales tax had it not been eliminated.
But here’s the kicker: The tax hike just jammed through the Legislature in less than one week by Senate Bill 1 contains a provision that, beginning in July of 2019, adjusts the base excise tax to what it was in July 2010 when the gas tax swap started. Currently, the excise tax on gas is 27.8 cents a gallon. But in July of 2010 it was 35.3 cents a gallon. So as it stands right now, that’s a seven cents per gallon increase, on top of the new 12 cents per gallon tax.
Magically, the 12-cent gas tax increase will likely be a 19-cent-per-gallon increase. And, of course, that entire 47 cents per gallon excise tax (35.3 + 12 cents) will be adjusted annually for inflation beginning Jan. 1, 2020 under SB1. If this seems complicated and hard to understand, keep in mind that the politicians like it that way.
But wait! There’s more!
California’s response to climate change igenerators of carbon emissions can trade emission allowances under an overall cap. California’s regulations already add substantial costs to gasoline even though those costs do not show up as a separate item at the pump.”
(igenerators?) Anybody have a definition?
Here’s mine: an emission allowances is a glorified money making scheme.
An aside: I heard this morning that California comes in dead last in the contest for (job creatin) new business. It is the most difficult state of all in which to start a business….
Related: The Arrogance of Blue America, by Joel Kotkin, The Daily Beast – If you want to see the worst impacts of blue policies, go to those red regions—like upstate New York or inland California—in states they control
We’ve been down this road before. Remember we were told the Lottery was for education and would pump in big bucks to our schools? We bought the lie and voted for it thinking our kids would benefit.
Then Prop. 98 and 111 were passed and the funds allocated from the general funds was reduced by the offsetting funds generated from the lottery. Instead of being additional funding they were supplanted in lieu of.
Working in education at the time we were all outraged that we had been lied to, again. Our kids didn’t get the benefits we were promised. Instead it was going into the general fund, through a back door, for our legislators to have a bigger spending spree on what they wanted.
We’ve been had again, and this time we didn’t even get to vote.
From below link.
Background
In this report, we analyze major budget issues affecting K–12 education, child care, and CCC, with a focus on Proposition 98 issues. Voters enacted Proposition 98 in 1988 as an amendment to the California Constitution. The measure, which was later modified by Proposition 111, establishes a minimum annual funding level to support K–14 education. Proposition 98 funding constitutes around three–fourths of total K–14 funding, with the remainder of support coming from federal funds, special funds (such as lottery revenues), fee revenue (such as CCC enrollment fees), and non–Proposition 98 state General Fund dollars (which are largely dedicated to debt service on school facilities and costs for teacher retirement).
Below, we provide some basic information about how Proposition 98 works and describe the Governor’s 2009–10 Proposition 98 proposals (starting with an overview and then highlighting proposals unique to K–12 education, child care, and CCC). In the next section of the report, we provide alternatives for balancing the K–14 budget. In the final section of the report, we lay out detailed recommendations relating to categorical reform, mandate reform, and cash management.
Proposition 98 Minimum Guarantee Driven by Formulas. The minimum Proposition 98 funding requirement—commonly called the minimum guarantee—is determined by one of three formulas. Figure 1 briefly explains these formulas (or “tests”). The five major factors underlying the Proposition 98 tests are (1) General Fund revenues, (2) state population, (3) personal income, (4) local property taxes, and (5) K–12 average daily attendance (ADA). In most years, the key determinants of the Proposition 98 minimum guarantee are changes in ADA, per capita personal income, and per capita General Fund revenues.”
http://www.lao.ca.gov/analysis_2009/education/ed_anl09002.aspx
No matter how high they jack up the tax on gas and diesel and car registration, it will never be high enough.
The corrupt Demorats have already written into law a way they can steal the money from the original stated purpose of fixing the roads and have it go to state employees.
Here’s a great must read article about the latest round of tax increases and the criminality involved. This should be a separate featured post here on Postscripts. Everyone should read this. Please pass this on to everyone you know.
If this doesn’t cry out for the state of Jefferson or the east/west split or some other solution I do not know what does.
In transportation tax rush, did Sacramento break the law?
http://www.ocregister.com/2017/04/16/in-transportation-tax-rush-did-sacramento-break-the-law/
And check the end of the article. Disgusting.
In addition to the billion dollars of “reward” written into SB132 on April 6, the bill was amended on April 5 to add $1 billion for “augmented employee compensation.”
Yes, another $1 billion of “compensation increases and increases in benefits” for state workers was slipped in while everyone was wondering where the state spent all our transportation taxes.
Talk about being taken for a ride.
Had enough yet?
I’ll take a look at it tonight if I have time.
California is the worlds 6th largest economy. last thing we want to be is like Kansas which is your economics model state.
Quote”An aside: I heard this morning ”
Source and facts?
Some People say………
I heard………..
facts………………………………. not I heard
PS I am still in Florida….. Funny how the streets of Miami flood….. The ice is melting and in a decade we will see more. Florida will loose it’s coastline and Malibu coastline? LOL gonna go too
Are you really going to call me on sourcing? YOU?!!!!
Get real propaganda boy. All you do is spout lefty/fascist talking points.
My source was a person in the small banking business. I don’t recall what exactly the parameters were for the ranking.
Forbes ranks states according to business friendly attributes. California is not dead last but it barely squeaks by in the top 30.
Buying all that green propaganda. eh? We were all supposed to be swimmers decades ago.
What a tool.
2011 article, LA Times, California plunges to bottom in new business creation – “From 2001 to 2009, it ranked first or second. But last year it lost 4,600 businesses.”
2016 article, Mercury News, “California, ranked as least business-friendly state, blows past all others in job creation”:
Who benefits in California?
All those big technology corporations that keep their sizable cash overseas and fire American workers, replacing them with foreign workers. Big companies are not big because the people that run them are stupid. California creates conditions in which only the very rich can operate. Yes Dewey…the very thing you hate (1%-ers) is what keeps California in a state of illusion.
yes I am
Tina one persons opinion repeated?
Where are the WMD’s in Iraq?
Proof Assad gassed?
many people said that
You seem to have this thinking that Republicans are always correct and a “leftie”? They are a liar.
The Democrats do the same.
In the end we have 2 sides of a Media Brainwashed coin that blame each other while the bankers and criminals are raiding our taxes and assets.
Yes Tina you can have a opinion but your denial on documented facts? You do not get it yet and we the people have no time for this.
They are going to replace workers with robotics and machines.
Again one more time ………………………………
They are going to replace workers with robotics and machines.
They have enough money to invest in these machines but want tax cuts so the cost does not affect their shareholder growth.
Wake Up Tina
You’ve been Had
Cutting tax Revenue while spending trillions more on a wall to keep us in and a Military that is not under control will get you a complete fascist State.
The Trickle Down Jig is UP
Enough is Enough already
Truth To Power Has No Party
I wouldn’t mind the tax increase so much if they actually fixed the roads. However they don’t, and Chico is a perfect example of that. Chico receives $2.5 million annually in gas tax revenue and claims they spend about 1 million a year on road repair. However from the condition of the streets I really doubt they are doing much repair. They siphon off road repair money for pet projects like bike paths. Did you seen the ridiculous bike overpass project they have proposed for 20th St.? Of course this expensive engineering study and design was paid for by the tax payers.
They do not want to fix any infrastructure. The goal is to privatize everything. Sell roads to the already failed foreign toll road companies ect ect.
Wall street wants to run everything.
They have to have a never ending increase in profits quarterly for the shareholders.
We are for sale. They want to bankrupt and let everything crumble
CA pays fed taxes and the Poor States suck the money up
Fer heaven’s sake guy … we just had the stormiest winter in quite some time. You know, your city employees just HATE getting calls from ignoramuses like yourself.
LOL You confuse weather with Climate?
Before one uses the word ignoramus one might educate oneself on the issue.
Turn off the TV Box and educate
The difference between weather and climate is a measure of time. Weather is what conditions of the atmosphere are over a short period of time, and climate is how the atmosphere “behaves” over relatively long periods of time.
https://www.nasa.gov/mission_pages/noaa-n/climate/climate_weather.html
Pentagon calls climate change a matter of ‘national security’
http://www.foxnews.com/politics/2014/10/13/pentagon-calls-climate-change-matter-national-security.html
Ect Ect
A snowstorm dos not mean the arctic ice is not melting faster than thought
http://nsidc.org/arcticseaicenews/
But hey new business opportunities!
As Arctic Ice Vanishes, New Shipping Routes Open
https://www.nytimes.com/interactive/2017/05/03/science/earth/arctic-shipping.html?_r=0
You asked for a definition of climate change “generators?” I submit that this term applies to those who spend their lives thinking up ways to tax folks to pay for their agendas with other people’s money.
And there go even more businesses and taxpayers departing what was once known as the Golden State and is now just Taxifornia.
Maybe we should ask for more information now that MonSatan is not hiding the geoengineering. We need to know what they are spraying in our skies? Scientific experiments?
Controlling Weather for Profit?
http://www.pnas.org/content/114/18/4582.short?rss=1
The University of Miami study confirms that the main reason for the increased flood events is sea-level rise.
http://www.npr.org/2016/05/10/476071206/as-waters-rise-miami-beach-builds-higher-streets-and-political-willpower
Before sea level rises, Miami Beach officials want to raise West Avenue 1½ to 2 feet
http://www.miamiherald.com/news/local/community/miami-dade/miami-beach/article7957323.html#storylink=cpy
Keep watching that MSM and having these silly Left/Right fights
Cause I am still in FL and this state may have a law against using the words climate change but the population is well aware of it. They just figure they will be dead before it affects their home. Snowbird country here.
Sea-Level Rise and Its Impact on Miami-Dade County. http://www.WRI.org …
[Search domain http://www.wri.org] wri.org/sites/default/files/sealevelrise_miami_fl…
LOL