Last year, California voters approved two tax increases aimed at bringing billions more dollars into state coffers. But that hasn’t stopped revenue-hungry lawmakers in the Legislature from seeking further tax hikes. It’s almost as if they think we can tax ourselves into prosperity.
A recent example of this type of confused thinking is the oil severance tax. Despite being rejected by voters in 2006 it keeps coming back up.
A severance tax is simply a fancy name for taxing something when it comes out of the ground — in this case, oil.
The truth is California already has a statewide severance tax that funds state oil and gas regulators. We also tax oil companies in many other ways. These taxes includes property taxes assessed on oil in the ground, local extraction taxes, plus California’s sky-high sales and corporate taxes.