Community Corner

Issue: Should Gas Taxes Be Even Higher to Boost Electric-Car Sales?

Californians now pay an average of 72 cents in federal and state excise and sales taxes on a gallon of gas.

Thanks to a February vote by the state Board of Equalization, Californians started paying 39.5 cents a gallon for regular gas July 1—a 3.5-cent hike.

As U-T San Diego reported: “A person who drives 15,000 miles a year at 20 miles per gallon would pay an extra $26.25 per year in gas taxes. That’s on top of the roughly $478 per year in state and federal taxes sales and excise. That doesn’t include local sales taxes, such as the half-cent San Diego charges.”

California already led the nation in gas taxes, of course. And now we’ll pay an average of 72 cents in federal and state excise and sales taxes on a gallon of gas.

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But might this be a good thing?  If gas taxes went through the roof, could it help fuel the growth of electric-car production and lead to lower costs of such vehicles?  Or should the government avoid market manipulation—“picking winners and losers”—and hold the line on gas taxes? Share your thoughts in the comments.


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