Sacramento Should Leave AB32 Alone

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The LA Times scratches its editorial chin today over the prospect that California’s cap-and-trade program will increase the price of gasoline next year:

Gas prices already have risen by close to 50 cents a gallon since the beginning of the year, for reasons that have nothing to do with AB 32. The prospect of adding 15 cents more — though it’s relatively minor compared with the overall price increase — is daunting to many drivers. Assemblyman Henry T. Perea (D-Fresno) has introduced a bill to delay the extension of the law to transportation fuels for three additional years.

That won’t do at all….The state must give drivers strong incentives to take fewer trips, carpool, use public transit and purchase electric or fuel-efficient vehicles. At the same time, state officials must remain sensitive to the effect a price increase will have on low-income and working-class Californians, especially those who commute long distances in areas where robust public transportation systems have not been built.

….The best solution to this dilemma was proposed this year by Senate leader Darrell Steinberg: Rather than extending AB 32, impose a carbon tax on gasoline, at least for a transitional period. But make it revenue-neutral by giving the money back to taxpayers — and especially low-income taxpayers — through tax credits on the state’s personal income tax.

Huh? Why should we replace one tax with another, and then rebate some of it to low-income taxpayers? If that’s what we want to do, why not just keep the cap-and-trade fees we already have and offset them with Steinberg’s tax credits? What am I missing here?

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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