SACRAMENTO, Calif. (KTXL) — Gov. Gavin Newsom announced on Friday that he is calling for a special legislative session in response to the record-high gas prices Californians are paying at the pump.
“Time to enact a windfall profits tax directly on oil companies that are ripping you off at the pump,” Newsom tweeted.
The idea to tax oil companies and pass the money to Californians was previously mentioned by Newsom on Twitter. He said passing a windfall tax would “ensure these profits go directly back to help millions of Californians who are paying for this oil company extortion.”
The California Legislature leaders responded favorably to Newsom’s announcement.
“The gas rebates that are beginning to roll out today to Californians were a huge step in helping ease the brunt of rising fuel costs, and we will continue to examine all other options to help consumers. As stated last week, a solution that takes excessive profits out of the hands of oil corporations and puts money back into the hands of consumers deserves strong consideration by the Legislature. We look forward to examining the Governor’s detailed proposal when we receive it.”Senate President pro Tempore Toni G. Atkins, D-San Diego, and Assembly Speaker Anthony Rendon, D-Lakewood
Rendon on Twitter called for the oil industry to respond “with detailed answers now to justify their apparent price gouging in California.”
This Friday was also the first day that the Middle Class Tax Refund, in the form of a payment to millions of taxpayers, started being sent out. The payment started as a rebate due to high gas prices in the spring and summer, and later turned into a rebate due to high inflation.