An Unfair and Costly Gas Tax Hike

There are two simple reasons why we should repeal the gas and car tax hikes: it costs you a lot more than you think – the tax hike will cost the typical family of four $779.28 more per year in taxes and 2) it won’t fix our roads – this is a blank check tax hike that has already been diverted away from road repairs.

Gas and Car Taxes Spike Our Cost of Living

The gas and car tax hikes cost too much and will increase the already-high cost-of-living in California.

Under the gas and car tax hikes, the typical family of four will pay $779.28 more per year in higher taxes. 

It gets worse! The car and gas tax hikes are slated to increase every year automatically.

This year Californians will pay nearly $1 more per gallon because of taxes, fees and other government mandates. By 2021, many Californians will be paying close to $2 more a gallon extra because of taxes, fees and other government mandates – that’s $40 extra each time you fill up your car.

That’s a crushing blow to most family budgets at a time when the cost-of-living in California is already skyrocketing higher! We cannot afford to let these tax increases happen – we must repeal them.

Politicians Won’t Fix the Roads – The Gas Tax Fraud

Politicians are not interested in fixing or expanding our roads – and the gas tax increase contains zero accountability on where the funds will be spent. In fact, the gas tax measure is specifically written to allow politicians to continue to divert all the funds away from road projects.

State Senator John Moorlach released an independent analysis of CalTrans the budget showing that only 20% of the gas tax funds were spent any where near roads.

Where do the politicians divert the gas tax money to? The funding has been diverted to cover budget deficits so politicians can continue to spend in other areas. Most of the funds spent on infrastructure get diverted from roads to transit buses, light rail projects, bike lanes (to replace roads), and even park land acquisition.

An independent audit proves very little money actually gets spent on construction. Most of the funding covers the high salaries and pensions for government workers in bloated bureaucracies who spend the day on administrative paperwork but don’t build a single road, let alone fill a single pothole. In fact the state auditor revealed that over 3500 employees at CalTrans had no project to work on – wasting a half-a-billion in taxpayer funds a year.

California is so wasteful with our infrastructure funds that we get far less for our funds than other states. The Reason Foundation report shows for every $1 spent in the other 49 states to maintain one mile of highway California state government spends $4.7 for the same mile – that’s a 470% cost inefficiency factor.

There’s a Better Way – The Road Repair Accountability Initiative

Californians are right to demand that our roads be repaired and expanded. That’s why our coalition has proposed the Road Repair Accountability Initiative. This measure is written not by the politicians, but taxpayer watchdogs and infrastructure experts. It imposes three strict and real requirements:

  • 100% Lock Box on Existing Gas Tax: The measure would dedicate 100% of the existing gas tax (i.e. the rate we paid before this latest hike) to road maintenance and improvement contracts (no staffing costs, it has to be actual concrete and asphalt!) Roads must be the only use for gas tax funds.
  • Car Sales Tax: The measure would dedicate 100% of the existing sales tax on the purchase of cars to regional infrastructure maintenance and expansion.
  • Efficiency Reforms: The measure would enact competitive bidding and other efficiency reforms to ensure that infrastructure funds are properly spent.

This alternative solution generates MORE funds for road repairs and road expansion than the gas and car tax hikes – and proves we can rebuild our state without tax increases. Proving they aren’t really interested in fixing roads, the Sacramento politicians are opposed to this measure.