Stand by for a dose of bad political theater today in Sacramento as the Democrats vote to increase what is already the nation’s highest gas tax by another $1.2 billion dollars. But it’s OK, as it’s “for the children.” As far as political drills go, this one is pretty spectacular. By law, preliminary school layoff notices have to go out over the weekend, so, the Democrats scheduled this vote to raise taxes on the oil industry to spend more on government education for the eve of the layoff notices. The Democrats’ proposal would levy a 6 percent tax on all oil produced within the state and impose a 2 percent tax on oil industry profits – none of which is supposed to be passed on to the consumer (a near impossible task). California produces 40 percent of its own oil and most of its own refined product (gas and diesel) and even refines almost 100 percent of Nevada’s fuel and about 60 percent of Arizona’s fuel. So, a 6 percent tax on California oil will mean that foreign oil, crude from places like Iran and Venezuela, will instantly have a 6 percent cost advantage on California oil (the U.S. Constitution prohibits California from taxing imports). With foreign oil cheaper, Californians will buy more of it, rendering us more dependent on foreign oil at a time when we should be becoming more independent of foreign oil while at the same time devastating California’s domestic oil production. Newspaper coverage of this political drill has been balanced. As the lead Republican in the Assembly on tax policy, I was quoted in five newspapers overnight:“It’s just bad political theater,” said Assemblyman Chuck DeVore, R-Irvine, vice chairman of the Revenue and Tax Committee. “If this bill ever made it into law, it would increase the cost of gas at the pump and . . . increase our reliance on foreign oil from places like Venezuela and Iran.” “It’s clearly a political drill that will devastate California’s own oil production, and make us not only reliant on oil from out of state but out of the country,” said Assemblyman Chuck DeVore, R-Irvine.“It’s bad political theater masquerading as responsible tax policy,” said Assemblyman Chuck DeVore, R-Irvine, the ranking Republican on the Assembly Revenue and Taxation Committee. “It’s actually bad fiscal and energy policy.”“This really is a drill,” said DeVore. “I wouldn’t want to insult the Democrats’ intelligence that they actually believe in the policies they’ve advocated. Clearly, these policies would devastate California’s domestic oil production.”DeVore said the proposal would “devastate oil production in California if it’s passed,” and would lead to an increase in Calfornia’s gas prices, despite language in the bill that specifically prohibits oil companies from passing the cost of the new tax on to consumers.
DeVore said the speaker timed his proposal close to Friday, the day when school districts must issue preliminary layoff notices to administrators and teachers, to drum up public support for taxes.
The Assembly is expected to vote on the bill in the afternoon. But it’s unlikely the legislation will survive because a tax measure requires a two-thirds vote and Republicans refuse to support it, according to Assemblyman Chuck DeVore, R-Irvine, vice chairman of the Assembly Revenue and Taxation committee.DeVore today called the bill nothing but political theater on the part of the speaker by introducing a controversial bill just before the Legislature takes off for spring break.
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