Tags: California | Democrats | Mobility Tax | Sacramento

Tax and Spend Will Not Fix Infrastructure

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Tuesday, 27 Jan 2015 04:38 PM Current | Bio | Archive

In their song "Life in the Fast Lane," the Eagles sang, "Life in the fast lane, surely make you lose your mind. Life in the fast lane, everything all the time."

Even though most of us never suffered life in the fast lane, we still enjoyed the song. Unfortunately, if the California legislature gets its way, everyone in the state is going to be living in the toll lane. I predict no one will enjoy it.

This time the gas tax has let the Sacramento Spenders down. Tax revenue is falling— according to the CBS station in San Francisco, due to lower gas prices, more fuel efficient vehicles and an increase in alternative fuel vehicles. This means the 2.25 percent sales tax on gasoline and the 9.67 percent sales tax on diesel doesn’t ring the cash register like they used to. Revenue from gas taxes peaked in 2003 at $2.3 billion. Last year it was $2.62 billion,

What California taxes don’t say is the gasoline sales tax isn’t the only source of tax revenue. California drivers already pay an excise tax of almost 40 cents per gallon, that’s included in the price used to calculate the sales tax, effectively charging you a tax on a tax.

But in the everything all the time legislature it simply isn’t enough. Now Democrats are considering charging every driver in California a tax on the total number of miles driven each year. Welcome to life in the toll lane.

At first glance this tax has a real potential for just desserts irony. The climate–responsible vegan that limps from electrical outlet to outlet in her Volt but drives 20,000 miles a year will pay more in mileage toll tax than the Republican enemy of the earth totaling 15,000 miles in his Ford Cobra muscle car.

Since this is California, that affront to climate justice won’t last long. Plus we can’t be taxing low income workers with a long commute more than telecommuting Silicon Valley plutocrats.

Adjustments will have to be made, tax credits for socially–responsible cars written and exemptions for low income drivers mandated. Making a foolish tax incredibly complicated.

To say nothing of the verification process for the yearly mileage reports. Will it mean annual trips to the DMV where some drone reads the odometer on your mileage anniversary? Or, will the same buccaneers performing car inspections be authorized to total your mileage too? Will this tax be paid at a different time than the income tax?
The questions multiply.

The solution to highway maintenance and construction isn’t another tax. The solution is don’t divert money from the highway fund to fund the pet projects of the Sacramento spenders, and stop wasting money on inefficient, duplicative social programs.

Michael Reagan is the son of President Ronald Reagan. He is president of The Reagan Legacy Foundation and chairman of the League of American Voters. Mike is an in-demand speaker with Premiere. Read more reports from Michael Reagan — Go Here Now.

 

 


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The solution to highway maintenance and construction isn’t another tax. The solution is don’t divert money from the highway fund to fund the pet projects of the Sacramento spenders, and stop wasting money on inefficient, duplicate social programs.
California, Democrats, Mobility Tax, Sacramento
496
2015-38-27
Tuesday, 27 Jan 2015 04:38 PM
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