Newsom Redefines Oil Company Windfall 'Tax' as 'Penalty' to Avoid 2/3 Vote

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California Gov. Gavin Newsom (D) changed his plan for a windfall tax on oil company profits to describe the tax as a “penalty” to avoid a requirement that new taxes be passed by a two-thirds vote in the state legislature.

, Newsom has attempted to claim that the “tax” is really just a “penalty,” because there may not be enough votes in the Democrat-dominated legislature to raise taxes again:It has to do with the state constitution, which requires any tax to be passed by two-thirds majorities in both houses of the Legislature. Newsom is betting that the civil penalties that he proposes would be exempt from that requirement and thus need only simple legislative vote majorities to become law.

In other words, he’s not certain that despite overwhelming Democratic legislative majorities he could muster a two-thirds vote for a profits tax, due to a general reluctance among politicians to impose new taxes and the oil industry’s vigorous courting of support, aided by its influential unions. Oil companies are still referring to the penalty as a tax, and would likely challenge it on legal grounds.

Newsom’s semantic games are reminiscent of another Democratic effort to play with the definitions of taxes and penalties. In 2012, the U.S. Supreme CourtObamacare from being overturned when Chief Justice John Roberts, supposedly a conservative with respect for the text of legislation, unilaterally decided that the law’s fine for failure to purchase health insurance was a constitutional tax and not an unconstitutional penalty.

Democrats had deliberately avoided referring to the fine as a tax when drafting the legislation because they feared a public backlash against raising taxes. Ultimately, they were able to get away with it, thanks to Roberts.on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET . He is the author of the recent e-book,

 

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So why does a governor get to impose any kind of made up penalty or tax? Isn’t that a legislative function? Oh, of course, rules only apply to conservatives.

The funniest part is that all these policies are pushing big oil into renewables. Which will obviously drive price of oil up. Then the same people crying about Exxon profits will be crying like a bitch about gas prices and blaming them when it's exactly what they voted for

All the oil companies will do is raise their prices. Higher tax, higher price of gas by same %.

Check his portfolio, financially biased I'm sure.

U-Haul salesmen of the year right there. :)

Commiefornia has it's own gasoline blend that's expensive to make and only 2 refineries outside CA make it. Therefore most is brewed in state where the regulations are strangling. Oil companies should stop making it and see what CA does.

Gruesome Newsom is such complete 🐎💩

Idiot.

Oil companies should boycott California and stop shipping/selling oil/gas there. Then California wouldn't have to worry about gas prices because there would be no gas to sell.

A penalty for what? Providing energy needs that the windmills and solar farms can compete with? This is what you get with central planners vs. free market solutions.

Oil companies should down wells and leave CA. Then watch the price of fuel?

He looks like Jamie Dutton! 🤣🤣

So, he wants to just make matters WORSE because anyone with more than two brain cells knows corporations don't pay taxes - CUSTOMERS do. All this is going to do is RAISE prices in California to staggeringly high levels over what are already unbelievably high levels.

Don't forget what he has planned 🤔 Reparations👈 another 📈 on tax. Rich will never pay, he's part of that class. Everyone else will 🤷

Anything to bypass oversight, public approval, state constitution, the law

Hitler and Stalin would be proud!

Newsome is he'll bent to destroy California and have California's policies act as a weight to drag the rest of the country into financial distress Of course, what else should we expect, after all he's Nancy Pelosi's nephew and look what the destruction she's inflicted to USA

Because GavinNewsom is a despot who doesn’t care about us Californians

Can you even find a U-Haul in California? Last one out turn off the lights.

Scumbag!

What's going to happen when the tax revenue shrinks?

Corrupt California system period

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