Our current legislators have overtaxed both businesses and residents in the state. Businesses are leaving at an alarming rate. California just recently passed SB1, the gas tax, which will have far reaching effects. Not only are consumers paying more at the pump, but DMV fees have increased as well. The gas tax increase will affect the poor, low-income, and middle-income families the most. People who must commute longer distances to work will be severely impacted. With the price of gasoline and the giant leap in diesel fuel increasing, the cost to transport all goods increases. At some point, everything gets to a store using fuel. This means food, clothing, and all other goods will cost more.
Our legislature also extended the cap and trade program with AB398, which really is just another way to increase taxes on the people. The Government tries to pretend that this is about clean energy and climate change. But it’s not. Cap and trade allows large companies to go on continuing to pollute just as they do currently, they just need to buy credits. Large companies can afford to purchase the credits, and they don’t mind doing so because they know smaller companies are often driven out of business, since they cannot afford the credits. This lowers the number of competitors. But competition lowers prices. So, this will allow the big companies to raise their prices. Think about it, who else are you able to buy from?
Also, in the Cap and Trade bill that was passed there is yet another tax on fuel. The Legislative Analyst’s Office states that the Cap and Trade bill that passed will increase gas prices by as much as 63 cents a gallon by 2021, and 73 cents by 2031. This is on top of the current gas tax increase. Rather than combating climate change, cap and trade really is just another tax on businesses, which in turn raises the cost of living. I am not in favor of any tax increases. We need to learn to live within our budget, cut spending and stop taxing our citizens into poverty.