Letter to Gavin Newsom, Governor of California - Suspension of Gas Tax

Letter

We write with serious concerns regarding fuel costs for California families. In recent months, the price of a gallon of gas has risen dramatically, with gas prices in California being the highest of any state in the country. With this in mind, we ask you to take immediate action to provide relief by suspending California's excise tax on gasoline for six months.

All Americans are struggling against an inflation rate of 7.9 percent, and the cost of gasoline is up nearly 40 percent from this time last year. Even as prices skyrocket, California continues to tax gasoline at 51.1 cents per gallon. This, in conjunction with other taxes and fees, results in Californians paying the highest price per gallon in the country. While market forces are responsible for today's extreme prices, California's high taxes represent an added burden, and working Californians simply cannot afford gas prices approaching $6 per gallon.

We were encouraged by your comments during the State of the State address. It is clear you recognize the strain this crisis places on families across our state. While we understand the state gas tax is an important funding source for several programs, we also believe California's projected budget surplus of $31 billion is enough to sustain these programs through a temporary suspension.

In addition to this surplus, California is expected to receive billions of dollars in federal support specifically for road projects and the repair and replacement of bridges. California's infrastructure certainly faces challenges, but our constituents face even greater difficulties. The state's budget surplus and new federal funds give you the opportunity to pass desperately needed savings on to ordinary Californians.

With the cost of goods rising across the board and the price of a gallon of gas at record highs now is the time to pursue all avenues of relief. We call on you to immediately suspend California's excise tax on gasoline for six months.