Newsom Proposes Freezing Gas Tax Hike To Combat Inflation

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Newsom Proposes Freezing Gas Tax Hike To Combat Inflation
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Doing so would cost the state about $523 million in revenue for things like roads and bridges.

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But it’s possible California could again hand out stimulus checks to residents this year. Newsom said revenues are growing so quickly that the state is projected to exceed a constitutional spending limit by about $2.6 billion. If that happens, the state could give some of that money back to taxpayers.

Newsom’s proposal now heads to the state Legislature, where Democrats have majorities so large they can pass any spending plan without Republican votes. Several Democratic leaders issued statements on Monday praising Newsom’s plan but pledging to work with him over the next month on changes.

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