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As Costs Rise, Californians Suffer

Posted by BrianDomingo at 5:31 PM on Jan 23, 2017


As Costs Rise, Californians Suffer

Doing business in California has become increasingly difficult because of failed polices set forth by the Jerry Brown-led State legislature. In 2015, the Claremont-McKenna College’s Rose Institute of State & Local Government released the Kosmont-Rose Institute Cost of Doing Business Survey.Its findings will not make current or potential business owners in California happy.

The study found that out of 20 cities surveyed (out of 9 western states), 12 are located in California. Larry Kosmont, President of Kosmont Companies and the publisher of the survey noted, “California continues to have the highest business tax climate on the West Coast. This reality compels businesses to reconsider their relationship with the State and look elsewhere for a lower-cost solution. ”This “lower cost solution” Kosmont is referring to entails fantastic businesses leaving the State of California altogether and setting up shop in a more business-friendly state.

And it’s not just businesses that are suffering under Jerry Brown; every day consumers are being weighed down by obscenely high gas prices as well.

You may have spoken to your friends and family who live outside of California, and perhaps the price of gas snuck its way into the conversation. They were probably amazed at how much you, as a Californian, pay for gas. Sadly, the average gas price in California is almost double compared to other states, much higher than other states’ averages. For example, if you cross the border into Arizona or Nevada, you’ll find that gas prices are much cheaper.

Why? One word: taxes.California has one of the highest gas taxes in the nation. The national average reflects a gas price of $1.82 per gallon, while in Southern California, the average is $2.80 per gallon - nearly a dollar more.

These taxes are hindering California’s economic growth. It has to stop. And it will stop when I’m Governor of California. Californians pay an excruciating .59 cents per gallon in gas taxes, higher than 46 other states.

Another major problem hindering California’s growth is the fact that California uses two blends of gas, one for the winter season and one for summer. Consequently, California is unable to adjust when a problem with our gasoline supplies erupt.

As an illustrative example, two major events led to a spike in gas prices recently.Last February, the Exxon-Mobil refinery exploded in Torrance and a labor strike shut down a plant in Martinez. Unfortunately, due to strict regulations, California was unable to adjust and both of these unexpected events led to a .26 cents-per-gallon increase in California gas prices.

Don’t expect things to get any better as the beautiful California summer rolls around. On April 1, California will switch to its mandated summer blend, and you can expect the price of gas to shoot upwards as the summer blend will cost approximately .10 cents per gallon more.

As governor, I will ensure that the great State of California becomes the place to do business again by removing the barriers that prevent business from doing business and thriving in California.