Two California Bills Emerge to Prevent Gas Tax

Date: January 22, 2015

NFIB California supports Senate Bill 5 and Assembly Bill 23, which would exempt gas and oil from the state's cap and trade program.

Small business owners in California stand a better chance of avoiding a costly gas tax, thanks to two recently filed pieces of legislation. 

Senate Bill 5, authored by State Senator Andy Vidak, and Assembly Bill 23, authored by Assemblyman Jim Patterson, would exempt gas and oil from California’s Cap and Trade program, preventing a gas tax.

“The extension of the Cap and Trade program is the wrong thing at the wrong time—put forth by an unelected group of agency employees,” says NFIB/Executive Director John Kabateck. “Higher fuel prices will derail the economic recovery that continues to sputter.”

Senate Bill 5 would “stop the permanent hike in gas prices that could range from 16 to 76 cents per gallon every time Californians fill up beginning Jan. 1,” according to Vidak. 

According to research conducted by Davis-based Encina advisors, California will lose over 18,000 jobs and $2.9 billion of economic output next year alone if the price of gas increases by just 10 cents per gallon. 

“If prices rise as high as some have speculated—up to 70 cents per gallon—just imagine the heavy toll it will take on our recovering economy,” Kabateck says. 

NFIB/CA supports this legislation because it will stop the taxing of fuels under the cap.

Committee hearings have not been scheduled yet, but for information—or to voice your opposition—contact your legislator or Ken DeVore, NFIB/CA legislative director at [email protected] or 916-448-9904.

How would a gas tax impact your small business? 

Related Content: Small Business News | California

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