Who is the “servant” here?
With an increase in electric and hybrid vehicles along with better fuel-efficient vehicles, changing Bay Area drivers habit are posing a serious problem for state coffers.
As motorists use less and less gas, gas tax revenues to pay for state highways, roads and bridges shrink. Meanwhile, as gas prices fall, so does the sales tax generated by fuel sales. In California, among the taxes collected on fuel is a 2.25% sales tax on gasoline and a 9.67 percent tax on diesel.
Some state lawmakers feel a mileage tax is the best solution.
Solution for what?
The serious problems posed for “state coffers”.
Hey here’s an idea … when state revenue goes down, how about cutting spending?
Note as well that no one is saying a thing about doing away with the fuel tax.
Nope … it’s all about the “state” and its needs. And all that needs to be done to deprive Californians of even more of their hard earned dollars is a vote of the legislature and a signature of the governor. Bingo, instant revenue (and likely a large new bureaucracy to “manage” it).
And the federal government is no different.
When a government is desperate for cash, it goes after the middle class, because that’s where the money is….
Though millions of Americans have been putting money into “tax free” 529 plans to save for their children’s increasingly expensive college educations, President Obama would change the law so that withdrawals from the plans to fund college would be taxed as ordinary income. So while you used to be able to get a nice tax benefit by saving for college, now you’ll be shelling out to Uncle Sam every time you withdraw to pay for Junior’s dorm fees.
This doesn’t hurt the very rich — who just pay for college out of pocket — or the poor, who get financial aid, but it’s pretty rough on the middle– and upper–middle class. In a double-whammy, those withdrawals will show up as income on parents’ income tax forms, which are used to calculate financial aid, making them look richer, and hence reducing grants.
Likewise, Obama proposes to tax the appreciation on inherited homes.
Because, you know, save the middle class … or something.
Pay up, suckers.