Gov. Newsom’s plan to offset high gas prices

June 25, 2022

Gov. Gavin Newsom


California Gov. Gavin Newsom and legislative leaders have tentatively reached a deal that calls for giving state residents hundreds of dollars in rebates in an attempt to help offset high gas prices. [ABC 7]

The agreement would return a portion of California’s record-setting $97 billion budget surplus to taxpayers under various income thresholds. Under the current agreement, single taxpayers would need to make less than $250,000 a year to qualify for a rebate, and couples would need to make a combined total of less than $500,000 a year to qualify.

Single residents who make less than $75,000 per year and couples who combined make less than $150,000 per year would receive $350 per taxpayer, as well as an extra $350 for each dependent. That means a married couple with one child, who earn a combined total of less than $150,000 per year, would receive a $1,050 rebate.

Single Californians who make between $75,000 and $125,000 per year and couples who make between $150,000 and $250,000 per year would receive $250 per taxpayer, plus another $250 for each dependent. Single Californians who make between $125,000 and $250,000 per year and couples who make between $250,000 and $500,000 per year would get $200 per taxpayer, plus $200 for each dependent.

The deal has yet to be finalized, and the numbers could change. But, a tentative agreement between Gov. Newsom and the Legislature has been reached, Assemblyman Miguel Santiago (D-Los Angeles) announced on Friday.

“As prices increase on everything from gas to baby formula, this rebate will help the vast majority of California taxpayers, including undocumented Californians, with hundreds of dollars in direct cash assistance, providing critical relief during tough times,” Santiago said in a statement.

Republicans have called for a temporary suspension of the state’s 51.1-cent-per-gallon gas tax. California’s gas tax is the second highest in the United States, and it is scheduled to increase to 53.9 cents per gallon next week.

Newsom and California Democrats have refused to suspend the gas tax.

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So couples that make half a million bucks a year will be compensated for fuel prices by the hard earned tax dollars of people making $40,000 and less a year?….

That’s not a plan its a campaign tactic…

Why not just remove the 52 cent per gal state gas tax and make it fair across the board?…

While I agree with the last statement, to say that someone making 40k is paying state (or federal tax) is laughable. Those making “500 k” are doing paying the taxes.

Every worker has payroll taxes taken from their checks and when you live paycheck to paycheck it doesn’t matter much to you that you get it back at the end of the year…

People who make $40k annually pay very little in the way of State and Fed income tax. Expected if they have children.

So, people who make more than $500k are not hard working and deserve nothing? If you believe in capitalism, then people who make that kind of money are, by definition, the hardest working.

I think we all pay high gas prices, so shouldn’t all of us benefit from this rebate, which is basically an acknowledgement that the people who made $500k worked extremely hard last year to have paid that much in tax that the state had such a huge surplus.

Rescinding the gas tax is a recipe for disaster. I opposed it when Biden brought it up, and I oppose it now. We cannot starve our highway funds just because of inflation. We need our roads and those funds will continue to dwindle as more drivers transition to electric vehicles.

Oh I see the confusion; hard work actually is referring to work that is hard, as in physically. And I think everyone, other than the CEOs themselves, wouldn’t put being CEO in the physically demanding job category.

Good point, but California’s gas tax has always been too high.


At $6.25 a gallon that is 60 gal worth of gas for the $350 gift which doesn’t amount to much when a lot of the people have to drive at least 50 miles a day.Also the $350 would be used for gas and you would just get the money back so you really haven’t given anything. Drop the gas tax for the next 6 months and that would help more. There is no reason we should be paying that much tax on gas anyway. Between the sky high vehicle registration and gas tax’s our roads should be perfect but they aren’t. I just paid $144 registration fee and $90 smog fee for a 1991 car which is crazy.

No one grasps a hold of out of control gov’t spending but instead are like the shell game “sharpies” that used to take advantage of travelers at the Marre Hotel in Avila. Shell game is “a game involving sleight of hand, in which three inverted cups or nutshells are moved about, and contestants must spot which is the one with a pea or other object underneath.”

I don’t know if the Governor is ignorant or doesn’t care. His policies and the policies of the party in power are directly responsible for the high prices. It is NOT the price of a barrel of oil, it is the lack of refining capicity that is causing the problem. Passing out money that is arguably not real, only adds to the problem. The reason CA has a budget surplus is because the FEDERAL GOVERMENT PRINTED and passed out and bunch of money that has blown up inflation. Newsom is putting a band-aid on a problem that he has no intention fixing. He either doesn’t know or doesn’t care. Either way the little guy is getting crushed and will continue to get crushed until we admit what the root of the problem is.

97 B surplus should be enough to build sanitariums for the mentally ill homeless , lower the gas tax, or a myriad of other better uses than this drop in the bucket campaign stunt.

Isn’t this financial discrimination?Shouldn’t each legally registered driver get the same amount? All drivers pay the same fuel taxes. I thought the left was against discrimination, but apparently their socialist beliefs trump that. Regardless, it’s another vote buying scheme.

This is not going to do anything to help reduce the high cost of gas at the pumps especially for those who have to commute to work. It’s just another handout to look like Santa Claus before the elections. So pitiful. Suspend the state gas tax for six months that would make a real difference. I can’t believe everyone keeps reelecting these self serving idiots. I guess we deserve what we get.

I agree and can’t believe people still buy their political crap

What another waste of money! That rebate won’t even fill up my vehicle once. More jokes for votes.

Setting aside the high gas prices, Governor Newsom is legally required to return the surplus to the state’s taxpayers, so now he claims to be helping us by giving us that same money as his gift to us, what a liar. Governor Newsom first give us the surplus money, then if you really want to help us suspend all state gas taxes, including the upcoming planned increase for at least the rest of the year.