Monday, April 17, 2017

Sacramento has hidden a provision in the gas tax to divert the money from roads.

Our political elites are learning that taxes on cars and gasoline remain very unpopular because they fall disproportionately on the working Californians — which is where the majority of voters reside. And the resentment might only grow when the taxes actually kick in.... is now clear that ACA5 is just another smokescreen that will allow the new tax hike dollars to go to all sorts of things other than roads and highways.

While ACA5 claims to protect the new tax revenue, it is evident from even a cursory reading of the language that this is not the case. While one provision seems to restrict the revenue from being diverted, another provision provides an exception based on statutory law “as those sections read on January 1st, 2018.” That’s right. An exception to the restriction is based on a law that can be amended before January 1st, 2018.

So there you have it. Before the ink is even dry on the bill imposing the transportation taxes, the tax-and-spend Legislature has created a situation whereby the money could, as it has several times in the past, be diverted to the general fund to be spent on pensions, government salaries, welfare, the bullet train or who knows what.

(Note: you can meet author Jon Coupal at the Republican Of The Year Dinner on May 6th, where he'll be our keynote speaker. Invitations are in the mail. See details ◼ HERE.)