California lawmakers are once again poised to introduce legislation to tax Big Oil despite public backlash over a similar move earlier this year.
Gov. Gavin Newsom is calling a special session Monday to debate penalties to oil companies over record profits he blames for the escalating gas prices. Both Newsom and the legislature have refused to put a moratorium on the state’s 54-cent gas tax, which went up 3 cents in the summer as prices were more than $6 a gallon in many places.
<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1670271780180,"cms.content.publishUser":{"_ref":"00000177-ab1c-dfb6-afff-bf5d00c50003","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1670271780180,"cms.content.updateUser":{"_ref":"00000177-ab1c-dfb6-afff-bf5d00c50003","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_67401476", "obj": {"id":"27789","width":"16","height":"9","video":"1174485"} }); ","_id":"00000184-e3f4-d791-abd4-fffdaba80000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedIn April, the legislature deleted a bill that called for a tax on Big Oil after a public outcry that claimed the move only would increase record-breaking pump prices.
“Big oil is ripping Californians off, and the deafening silence from the industry yesterday is the latest proof that a price gouging penalty is needed to hold them accountable for profiteering at the expense of California families,” Newsom said in a statement. “I’m calling a special session of the Legislature to do just that, and to increase transparency on pricing and protect Californians from outrageous price spikes in the future.”
A recent state hearing revealed oil company profits of $63 billion between July and September, “disproportionately affecting low- and middle-income families,” Newsom said.
California uses a pricey special blend of gasoline during summer months to combat pollution. Los Angeles County District Attorney George Gascon signed an order reverting to regular gasoline a month early in order to bring down prices. The prices are down into the $5-a-gallon range, which is still $2 higher than when President Joe Biden took office.
CALIFORNIA SEEKS TO LEVY BIG OIL PROFITS INSTEAD OF SUSPENDING GAS TAX
The special session will also look at empowering state agencies to “more closely review gas costs, profits and pricing … with greater regulatory oversight of the refining, distribution and retailing segments of the gasoline market in California.”
The earlier attempt to change the law was not spearheaded by Newsom, but rather occurred when a bill was introduced by Assemblyman Kevin Kiley to delete the gas tax.
Instead, the language was rewritten to place a tax on oil companies. As negative reaction on social media climbed, a legislative committee deleted the bill.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
If the measure passes, it could mean more oil companies leave the Golden State. Chevron has already taken its headquarters and left California, relocating in Texas.
