New Report Reveals Major Cost of Living Increase for California Working Families from Gas/Car Tax Hikes

Data suggests lower-income families will be hardest hit by regressive gas/car tax hikes that Prop 6 would repeal

A new report released by the California Policy Center entitled “The Grinch that Stole Christmas – The True Impact of Gas and Car Taxes,” shows a massive cost-of-living impact to working families in the region. Among the findings:

With the new gas tax and car tax hikes in place, an “average” two-car family will pay at least $1500 in taxes a year.[1] When adjusting for the “average” tax rate, a two-car “average” family in the must earn almost $2000 in pre-tax earnings just to pay their California car and gas taxes. [2]

Using the most conservative modeling, the latest gas tax and car tax hikes alone will force a family of four to pay anywhere between roughly $650 and $800 more in tax and living expenses – depending on commute and consumption of goods and services impacted by fuel prices

The cost-of-living increases resulting from the new gas and car tax hikes will require sacrifices from working families. In fact, it almost wipes out what the average family spends on Christmas each year ($935.58) – according to the National Retail Federation.

“This report shows that the latest gas and car tax hikes are a crushing blow to working families and makes the strongest case for a Yes vote on Prop 6 to repeal the car and gas tax hikes.” –Carl DeMaio, chairman of the Yes on 6 Gas Tax Repeal Campaign

“Sacramento politicians are deceptively downplaying the true cost-of-living impact of their car and gas tax hikes, and this study shows just how painful those new taxes will be for working families.”  -Will Swaim, California Policy Center

A copy of the report is available here

[1] Legislative Analyst’s Office – Primer
[2] “What’s the Average American’s Tax Rate?” USA Today, March 10, 2017