“He said the sales tax cut from 7 percent to 6 percent phased in over 2017 and 2018 will cost about $1.3 billion, while the gas tax hike is estimated to bring in roughly the same amount. The result will be a net neutral tax on residents, he said. Legislative estimates, however, suggest the state could lose up to nearly $2 billion a year.”
From the article it’s unclear if the sales tax cut applies only to gasoline or all taxable sales. If it does, what they are doing is shifting the tax burden to a narrower base of just motorists. the problem we have here in California is that our gas is taxed by the gallon and then a sales tax is added to all of it, and worse yet, the money, which is supposed to go for vehicular infrastucture, is purloined for bike paths, public transit and even welfare. I just can’t wait for the whole shebang to crash! I hope I live to see it!
Then why do it. What is the tax on gas now 50%?