California

Clash On Gas Tax Package

Jennifer Halligan

California Democratic State Senators have halted a plan to alter the way gasoline is taxed in the state due to Governor Arnold Schwarzenegger’s intent to veto it. The plan would suspend tax breaks for some corporations and intended to allow local authorities to raise gasoline prices in order to pay for mass transit. The Governor’s spokesperson expressed the administration’s belief that the tax increase would not help with the state’s economic or employment problems. Legislators are now working with the Governor to craft a plan that both Democrats and Republicans can agree on.

• Veto: the power to stop a piece of legislation

• Democrats believed the plan would have helped mass transit after budget cuts took away funding, and also free up money for general spending
• Schwarzenegger’s spokesman said that the plan would not cut spending or create jobs, and thus is not a priority; and that the suspension of tax breaks for corporations would destroy jobs.

Additional Reading:

- http://latimesblogs.latimes.com/california-politics/2010/02/under-threat-of-veto-gas-tax-package-on-hold.html

- http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/23/BAP51C5FL6.DTL