Article Image

IPFS News Link • California

California Gov. Gavin Newsom is to give up to $800 debit cards to ALL Golden State drivers...

• By ANDREA CAVALLIER

California drivers shouldering the highest gas prices in the nation could soon get a tax break, free public transportation and up to $800 debit cards to help pay for fuel - but economics experts warn it'll drive up inflation even more. 

The proposal was revealed Wednesday by Gov. Gavin Newsom, as gas prices have continued to soar in recent weeks from pandemic-induced inflation and Russia's invasion of Ukraine

'That direct relief will address the issue that we are all struggling to address and that is the issue of gas prices,' Newsom said in a video posted on Twitter this week.

State governments across the country have been debating what to do about it, with the most popular choices being slashing fuel taxes or offering rebates to taxpayers. 

Last week, the governors of Maryland and Georgia signed laws temporarily suspending their state's gas taxes, while Georgia on Wednesday also offered $1.1 billion in refunds to taxpayers in a separate action.

California's average gas prices hit a new state record Wednesday at $5.88 per gallon, more than $2 higher than it was a year ago, according to AAA. 

California has the second-highest gas tax in the country at 51 cents per gallon. 

But the state's Democratic leaders have been wary of suspending the gas tax because they fear oil companies would not pass along the savings to drivers.

Instead, they want to send money directly to taxpayers. 

The governor's office says the average California driver spends about $300 per year on gas taxes. Newsom's idea is to give car owners $400 debit cards for up to two vehicles, for a total of $800. 


Free Talk Live