The bill from state Sen.
The proceeds would go into the state’s general fund and could be used for a variety of services including schools and healthcare.
“While oil companies rake in enormous profits and other states take in billions of dollars in revenue for critical programs like education,
The gas tax increase approved in 2017 led to the recall of a Democratic state senator from
“Here we go again,” said Assembly Republican Leader
State lawmakers have introduced oil extraction tax proposals six times in the last decade, all of which died in the Legislature. The unsuccessful proposals included a 2013 measure that would have dedicated the money to education and parks programs.
In 2008, as a recession led to a historic state budget deficit, then-Gov.
Past failed attempts also include Proposition 87 in 2006, an initiative that would have taxed oil to pay for research and development of alternative energy programs. The ballot measure received only 45.3% of the vote after oil companies spent some $95 million on a campaign against it.
Supporters of Wieckowski’s bill believe the legislation has a much better chance this year than it would have had in the past.
Some believe the odds are also better under Gov.
“This is a proposal whose time has come,” said Jamie Court, president of Consumer Watchdog, a nonprofit organization that frequently criticizes the oil industry. “Now that we have a governor who isn’t taking money from Big Oil it’s time to make them pay their fair share of taxes.”
During last year’s campaign, Newsom said an oil severance tax is one of several ideas for changing the tax system that are on the table. The governor has not taken a position on the Wieckowski bill.
But the Democratic supermajority does not guarantee passage. The oil industry worked hard last year at electing moderate
Opponents note Wieckowski’s tax is one of several proposed new levies being floated by
Other bills introduced before last week’s legislative deadline include a sales tax on services received by businesses, including those from attorneys and accountants, and a water tax floated by Newsom that would boost the average monthly bill by about 95 cents to provide clean water to low-income communities.
“From taxing soda to tires to water, the majority party continues to want more of your hard-earned money,”
But the oil extraction tax will put jobs at risk, said
“In the midst of
Wieckowski cited data from the
“The price consumers pay at the pump is determined by events in the global marketplace,” he said.
A 10% tax on oil pumped from the ground would not necessarily translate into an increase of that amount in gas prices, said
“As a refiner, I would tell the
But the impact could be that there is less crude oil production in
Wieckowski bristles at critics who question the timing of his proposal just over a year after 2017’s gas tax increases took effect.
“The better question is why should
(c)2019 the Los Angeles Times
Visit the Los Angeles Times at www.latimes.com
Distributed by Tribune Content Agency, LLC.