Gas tax makes for higher holiday travel prices - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Gas tax makes for higher holiday travel prices

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SAN DIEGO (NEWS 8) - The long holiday getaway is starting and people traveling by car could feel an extra pinch from the recent gas tax. 

A petition drive is underway Tuesday morning to repeal the tax. A statewide gas tax increase went into effect on November 1, raising prices by 12 cents statewide. 

Monday night, a petition drive was approved to start collecting signatures. That means voters could see this on the ballot in 2018.

The tax was implemented to bring in money for state road repairs and mass transit improvements, but some argue that drivers should have been able to vote on the matter rather than just dealing with the pain at the pump.

Supporters of the tax increase say that the money is desperately needed to fix California’s crumbling roadways. 

A campaign against the repeal is being led by a coalition called Fix Our Roads. The group says its prepared to spend $40 million to keep this from getting onto the ballot.

Meantime, the repeal effort is still in the beginning stages. More than 580,000 signatures are needed just to get it on the ballot. 

A nonpartisan analysis says the Senate tax overhaul bill would produce tax increases for half of all taxpayers by 2027.

The Tax Policy Center says that's because most of the legislation's personal tax reductions expire in 2026.

The organization says compared with current law, 9 percent would see higher levies in 2019, a year after the package would take effect.

The analysis says that generally, higher earning people get proportionately larger reductions.

In 2019, people earning below $25,000 would get average $50 in cuts, 0.3 percent of their after-tax income. Those earning above $746,000 would see average reductions of $34,000, or 2.2 percent of their income.

The report says the plan would cut taxes on average for all income groups in 2019.

Senate leaders hope for passage next week.

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