This should help the inflation problem.
California Governor Gavin Newsom (D) on Wednesday said he wants to give the car owners of his state $400 gas cards to help ease the pain at the pump.
The average price of gas in California is $6 per gallon.
Newsom and the California Democrats are proposing $11 billion in relief, including a $9 billion tax refund for rising gas prices.
Every registered car owner in California will receive a $400 gas debit card – maximum of $800 if the person owns two cars.
Three months of ‘free’ public transit will be offered to people who don’t own cars.
Newsom also blamed Putin for the soaring gas prices even though gas prices were rising before the Russian invasion of Ukraine.
“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Newsom said.
chart courtesy of Zero Hedge
The San Francisco Chronicle reported:
Gov. Gavin Newsom unveiled a proposal Wednesday to blunt California’s highest-in-the-nation gas prices by giving every vehicle owner in the state a $400 tax refund in the form of a debit card.
Newsom’s announcement is part of an $11 billion package his office said would help residents deal with the high price of gasoline, which has soared to a statewide average of $5.87 per gallon.
The debit cards would be mailed to the registered owners of vehicles, with a maximum of $800 per person for those who own more than one vehicle. In addition, Newsom wants to provide relief to non-drivers by making rail and mass transit service free for three months.
Newsom needs lawmakers’ support to approve the rebate plan as part of the state budget, so the payments could start by July. But that prospective delay sparked sharp criticism from Republicans, who’ve demanded the state provide both a rebate and more immediate relief by suspending the gas tax of 51 cents per gallon.
Millions of people could get $400 debt cards if the plan is approved. According to the DMV, there are more than 35.8 million registered vehicles in California, though that number includes people with multiple titles. Rebates would also go to drivers who have electric cars or those with lease agreements.
NEW: we’re proposing $11 BILLION in relief, including a $9 billion tax refund for rising gas prices.
– $400 per registered car
– 3 months of free public transitpic.twitter.com/XsAn0kuokP
— Gavin Newsom (@GavinNewsom) March 23, 2022