Sacramento Democrats' $52 billion Tax Plan: Myths vs. Facts
Senate Bill 1
Myth: All $52 billion will go to fix our roads.
FACT: Senate Bill 1 sends money to transit, walking and bike paths and state parks, and leaves the door open to divert money to high-speed rail.
Myth: This is a solution where drivers will pay less for a better quality of life.
FACT: Huge increases in the gas tax today will grow in the future while failing to recognize a pending “cap-and-trade” expansion could raise gas prices by an estimated 63 cents per gallon in 2021, increasing to 73 cents per gallon in 2031. Automatic inflation increases taxes without accountability.
Myth: Republicans do not have a plan.
FACT: Republicans have a plan, Assembly Bill 496, that fully funds road repairs and traffic relief without increasing taxes on working and middle-class Californians.
Myth: Everyone pays their fair share.
FACT: Electric vehicle owners pay a flat rate of $100. More typically, California drivers will pay an extra $125 to $260 each year in gas taxes. (This is on top of what we currently pay.)
Myth: This is a compromise solution.
FACT: Conducted behind closed doors, this is a deal driven by Sacramento Democrats.
Myth: Californians will spend less time on congested highways and roads.
FACT: Only about two (2) percent of the funds can be spent on highway and road congestion relief, leaving drivers paying more while still stuck idling in traffic.
Myth: California cannot pay for these costs out of the General Fund.
FACT: General revenues are at an all-time high, but Democrats have increased spending on discretionary government programs other than roads by billions of dollars in recent years. Democrats could have prioritized our roads.