Photo: Aydin Ntubo on Twitter
California’s Governor Gavin Newsom confirmed that he is going to call the Legislature into a Special Session over rising gas prices. He intends to impose a new tax that will be applied only once. Here’s what you need to know.
Californians have long been seeing eye-watering prices at the gas pump. Now, Gavin Newsom wants to fix that by applying a windfall profits tax directly on oil companies. It represents a one-off surtax that is imposed on a company or multiple entities or a certain industry when the economic outlook allows them to make hefty and unusually large profits.
“Gas prices are too high. Time to enact a windfall profits tax directly on oil companies that are ripping you off at the pump,” said Newsom.
The Governor of California can call the Legislature into a special session only to achieve a certain purpose. Establishing a new, one-time tax on oil companies is the right occasion for such an activity.
Gavin Newsom is also running for another term as Governor of California in 2022, and is poised to get another four years at the helm of the state.
Upon hearing the governor’s intent to tax oil companies, some Californians took to Twitter to express their discontent. Some argued that there are too many state taxes and fees. Currently, for every gallon of gas, the applicable Californian taxes and fees amount to a little over $1. When the federal excise tax gets added, the amount rises to $1.19 per gallon.
The state of California currently has the highest fuel prices in the country, according to AAA. The national average price currently sits at $3.89 a gallon for regular gas and $4.91 a gallon for diesel. The Golden State’s average prices for fuel are $6.39 a gallon for regular gas and $6.40 a gallon for diesel. A gallon of gas is almost double the price than that paid by Texans – they fill up with regular gas at a state average of $3.23 a gallon, while diesel is $4.46 a gallon.
California recently banned the sale of new fossil fuel-powered vehicles by 2035.
“Gas prices are too high. Time to enact a windfall profits tax directly on oil companies that are ripping you off at the pump,” said Newsom.
The Governor of California can call the Legislature into a special session only to achieve a certain purpose. Establishing a new, one-time tax on oil companies is the right occasion for such an activity.
Gavin Newsom is also running for another term as Governor of California in 2022, and is poised to get another four years at the helm of the state.
Upon hearing the governor’s intent to tax oil companies, some Californians took to Twitter to express their discontent. Some argued that there are too many state taxes and fees. Currently, for every gallon of gas, the applicable Californian taxes and fees amount to a little over $1. When the federal excise tax gets added, the amount rises to $1.19 per gallon.
The state of California currently has the highest fuel prices in the country, according to AAA. The national average price currently sits at $3.89 a gallon for regular gas and $4.91 a gallon for diesel. The Golden State’s average prices for fuel are $6.39 a gallon for regular gas and $6.40 a gallon for diesel. A gallon of gas is almost double the price than that paid by Texans – they fill up with regular gas at a state average of $3.23 a gallon, while diesel is $4.46 a gallon.
California recently banned the sale of new fossil fuel-powered vehicles by 2035.
NEW: I'm calling for a Special Session to address the greed of oil companies. Gas prices are too high. Time to enact a windfall profits tax directly on oil companies that are ripping you off at the pump.
— Gavin Newsom (@GavinNewsom) October 7, 2022
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