Mileage Tax will Hurt California Middle Class, State Budget

From Breitbart California:

California Democrats wants to create a mileage tax–a new tax on every mile driven in the state–despite already having the highest gas taxes in the nation.

State officials say they need the tax increase, because gas tax collections to pay for roads and bridges has been shrinking. But the real culprit for lower tax revenues is that California’s middle class is being forced by high taxes to move out of state and drive less. A mileage tax increase will just increase middle class pain and generate even lower tax revenue for roads and bridges.

Gasoline tax collections peaked out $2.8 billion per year in 2006, the same year former Gov. Arnold Schwarzenegger signed AB 32, known as the Global Warming Solutions Act, or “cap-and-trade.” The legislation committed the state to use taxes and fees to reduce its greenhouse gas emissions to 1990 levels by 2020. Since that time, gas tax collections have slowly trended down about 7.1 percent to $2.6 billion last year.

For the liberals in the California Legislature, it's always about increasing the funding to their insatiable spending desire.

State officials pretend the falling gas tax revenue is partly due to the tiny number of electric vehicles on the road and mostly due to cars getting better mileage. But gas tax collection around the U.S. has continued to increase most years, despite average vehicle gas mileage increasing every year for the past 6 decades. It is only California that has had falling gas tax revenue for the last decade.

I have always assumed the main reason shy Kalifornia gas tax revenue has dropped was due to the increase in CAFE standards. But, if revenue is increasing in the rest of the country, it could mean one of two things. Less consumption due to a decrease in car owning population and/or the continuing poor economic policies in the State which is stifling economic growth.