California Gov. Gavin Newsom unveiled a tax relief plan Wednesday that would send $400 per car to registered owners in response to surging gas prices across the United States.
The $11 billion proposal would send debit cards to all registered car owners in the state, with a cap of $800 per person. According to Newsom’s office, Californians spend approximately $300 a year in excise gas taxes.
“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” the Democrat said in a statement. “But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation.”
NEWSOM SIGNS EMERGENCY BILL TO PREVENT CUT OF 3,000 ADMISSIONS AT UC BERKELEY
Newsom’s office pledged that $9 billion will be used on the direct payments, while the other $2 billion would provide broader transportation relief. The $2 billion bracket includes a one-year pause on diesel sale taxes, projects that emphasize the importance of walking and biking, and free public transportation for California residents for three months. Those who rely on public transportation would otherwise not receive money from the plan.
The governor teased his new multibillion-dollar plan in his State of the State address earlier this month, promising to put more money in the hands of Golden State residents to combat increasing gas prices. Some gas stations in California, which has the highest prices in the country, have surpassed $6 per gallon.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
In order for the proposed plan to go into effect, Newsom will need approval from both chambers of the state Legislature.
California Senate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon have released their own plan, which includes $200 rebates for every taxpayer and dependent but does not include the top 10% of earners.
Newsom said his administration will meet with the Legislature later this week to negotiate. If his proposal is passed, residents can expect to receive the cards as early as July.
