California Governor Gavin Newsom revealed a proposal on Wednesday that could provide state residents with heavy relaxations on fuel costs — including $800 on debit cards, free rides on public transport and tax breaks.
The news comes as the United States has seen a steep rise in gas prices, a spike that has been directly connected to Russia’s ongoing war in Ukraine and pandemic-induced inflation.
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While gas prices have soared across the nation, California seems to be hit the hardest. Media reports suggest that a jump of $2 per gallon has been since in the price when compared to last year’s costs. Going up to $5.88 per gallon as of Wednesday, average gas prices in the state hit record levels.
California has the second-highest gas tax in the country at 51 cents per gallon. But the state’s Democratic leaders have been wary of suspending the gas tax because they fear oil companies would not pass along the savings to drivers, according to reports from Associated Press.
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What is included in the new proposal?
The governor’s office says the average California driver spends about $300 per year on gas taxes. Newsom’s idea is to give car owners $400 debit cards for up to two vehicles, for a total of $800.
The money would go to everyone who has a car registered with the state — including the uber-rich, people living in the country illegally, and even drivers who own vehicles that do not use gasoline.
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For people who do not have cars, Newsom wants the state to pay for their bus or train fare for three months. His proposal would give $750 million to transit and rail agencies, which Newsom said would be enough to give free rides to 3 million people per day, according to reports from Associated Press.
About $1.1 billion would pay to pause scheduled inflationary increases for diesel and fuel taxes this summer, and another $500 million would pay for projects that promote biking and walking.