California Governor Newsom to Call Special Session to Impose Windfall Tax on Oil Companies Amid Soaring Gas Prices
California Governor Gavin Newsom on Friday announced his will be calling a special legislative session to impose a windfall tan on ‘greedy’ oil companies.
Newsom made the announcement amid soaring gas prices.
California already has the highest gas prices in the nation at more than $6 per gallon.
Californians already pay the highest tax rate on gasoline in the US which amounts to 68 cents per gallon.
“I’m calling for a Special Session to address the greed of oil companies. Gas prices are too high. Time to enact a windfall profits tax directly on oil companies that are ripping you off at the pump.” Newsom said on Friday.
Of course the tax will just be passed down to the consumer.
NEW: I’m calling for a Special Session to address the greed of oil companies. Gas prices are too high. Time to enact a windfall profits tax directly on oil companies that are ripping you off at the pump.
— Gavin Newsom (@GavinNewsom) October 7, 2022
The Hill reported:
California Gov. Gavin Newsom (D) announced Friday that he plans to call a special session of the state legislature in December to impose a tax on oil companies’ profits as gas prices remain at record levels in the state.
Newsom at a press conference on Friday said that California’s major environmental regulations are not the cause of the high prices. He said all the environmental related costs do not equal the roughly $2.50 per gallon more that Californians are paying for gas than the average American.
AAA states that a gallon of gas costs an average of about $3.90 nationally.
Newsom said most states have gas taxes that average about 30 cents while California’s is 54 cents, which he said does not add up “anywhere close” to $2.50.
“This is just rank price gouging,” he said. “They can get away with it. They’re fleecing. They’re taking advantage of you, every single one of you, every single day.”
He said the oil companies are taking hundreds of millions of dollars per week and then “polluting this planet.”
“It’s time to get serious,” Newsom said about the special session. “I’m sick of them defining the terms, defining the narrative.”