Californians shouldering the nation’s highest gas prices could soon get a tax break, free rides on public transit and up to $800 on debit cards to help pay for fuel under a proposal revealed Wednesday by Gov. Gavin Newsom.
SACRAMENTO, Calif. — Californians shouldering the nation’s highest gas prices could soon get a tax break, free rides on public transit and up to $800 on debit cards to help pay for fuel under a proposal revealed Wednesday by Democratic Gov. Gavin Newsom
For people who don’t have cars, Newsom wants the state to pay for their bus or train fare for three months. His proposal would give $750 million to transit and rail agencies, which Newsom said would be enough to give free rides to 3 million people per day. About $1.1 billion would pay to pause scheduled inflationary increases for diesel and fuel taxes this summer, and another $500 million would pay for projects that promote biking and walking.
Higher gas prices typically inspire people to be more thoughtful about their vehicle use by walking more or eliminating unnecessary car trips, said Laura Deehan, state director for Environment California, a nonprofit that advocates for an end to fossil fuel use. Giving people money for gas would encourage them to drive more, she said.
Newsom’s plan must be approved by the Legislature, where Democrats dominate both the Assembly and the Senate. Democratic leaders, however, don’t like the idea of giving money to rich people. They have been discussing their own rebate proposal, one that would give $200 rebates to every taxpayer and their children with taxable income less than $125,000 for single filers and $250,000 for joint filers.
Newsom’s plan is similar to a separate proposal floated last week by more moderate Democrats in the state Assembly that would give every taxpayer $400, regardless of income. Assemblywoman Cottie Petrie-Norris, a Democrat from Laguna Beach who supports that plan, on Wednesday urged the Legislature and Newsom to act quickly.
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