Californians May Get $400 Gas Tax Refunds

California Governor Gavin Newsom is considering distributing one-time $400 gas tax debit cards to relieve Californians’ pain at the pump.

California is currently grappling with the highest gas prices in the nation, with the statewide average above $5.91 cents per gallon, as of March 28^th, the New York Post reports .

“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices,” said Newsom, blaming the high gas prices on Russia’s invasion of Ukraine. “But this package is also focused on protecting people from volatile gas prices and advancing clean transportation.” If the state legislature approves the measure, California residents would get a $400 debit card per registered vehicle.

California’s diesel excise tax would also be suspended along with $750 million to transit agencies. Newsom says that when this funding is restored, it would be sufficient to give free rides to 3 million people per day.

With gas prices continuing to increase, AAA reported more incidents of gas theft and siphoning in the state. "This is a sign of the times, you know,” AAA spokoesman Doug Shupe told a Fox Los Angeles affiliate. “It's thieves looking for ways that they can make money by stealing what is becoming an increasingly more expensive and valuable commodity: gasoline."

‘Worse Than Carter’

For many Californians, Newsom’s plan cannot come soon enough. In Los Angeles, a city that has regularly seen prices over $7 a gallon since the war in Ukraine began, retired Los Angeles School District Administrator Eugene Hernandez compares today’s conditions to the Carter years. “I’m remembering 1979, when there was a Middle East oil crisis,” Hernandez told the Los Angeles Times. “I could only buy gas on odd-numbered days of the month. People with license plates that ended in even numbers went on even days.”

Lines at gas stations around the entire nation stretched for blocks, or even miles during the 1979 oil crisis. Similar examples have occurred recently, with long lines for gas being reported in California.

“It’s 43 years later, and the same stuff is happening again,” Hernandez continues. “I think it’s worse now than it was then. This will be around a long time, and I don’t know when it’s going to stop.”

Newsom’s proposal has not been well received by everyone, though. Patrick DeHaan, an analyst at GasBuddy, tweeted Newsom’s plan “will swell gasoline demand at a time of refinery challenges and high prices. This will end badly.”

Similarly, California Republicans think that issuing the debit cards in July is too late, with Assembly Republican Leader James Gallagher saying, “July? Seriously? Californians are struggling and Capitol Democrats are dragging their feet. How could it possibly take that long?”

What About Lower CA Taxes?

Another analyst, CEO of Engineered Tax Services Julio Gonzalez, additionally took issue with Newsom’s plan. In speaking with Newsmax Finance, Gonzalez says California’s tax system and its gas tax are a burden to consumers.

“Since California is known to have such a large surplus of resources, why doesn’t Governor Newsom simply lower the individual taxes of his constituents?” Gonzalez asks.

“He could also lower gas taxes, which would, in turn, produce real results and provide true help to the citizens in the state,” Gonzalez continues. “Handouts that create dependency on the government will be a mistake. What Governor Newsom needs to implement are policies that create an interdependency from the government.”