California gas tax holiday would split benefits between consumers, oil companies

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Rebate proponents say giving taxpayers extra cash would ensure that all the money goes directly to consumers and isn't siphoned off by oil companies. And there is evidence to suggest that they are right.

California's gas tax is roughly $0.51 per gallon, so $400 would be the rough equivalent of a one-year gas tax holiday for a motorist who fills a 15-gallon tank once a week.

Another argument Democrats make is that giving taxpayers extra cash would ensure all the money goes directly to consumers and isn't siphoned off by oil companies. And there is evidence to suggest they are right.of gas tax suspensions in Illinois and Indiana during a price spike in 2000. They found that roughly 70% of the savings were pocketed by consumers while the remaining 30% was kept by gas producers.

When Illinois and Indiana suspended their gas taxes, he said, demand for gas spiked. Normally that would push prices upward again — but neighboring states were able to send more gas to the two states to meet the higher demand.California, however, has higher gasoline purity standards than neighboring states, and there are not as many oil refineries able to produce gas that can be sold here.

"We have had some conversations with the governor's office," Petrie-Norris said." really looking forward to seeing their proposal and continuing to work with the governor, with leadership and with our colleagues to very quickly get money into the pockets of Californians."

 

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