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California Gov. Newsom Proposes $400 Debit Cards for Car Owners

California Gov. Newsom Proposes $400 Debit Cards for Car Owners

Sadly for Newsom, many Californians are skeptical at the chances for success of this plan.

https://www.youtube.com/watch?v=LZSxmyjKGEY

Many people around the country complain about gas that is $4 or more per gallon at the pumps. However, the average price in California is over $5, and in some parts, it is over $6.00.

Someone pump the brakes. The average price for a gallon of regular gasoline is now above $6 in Los Angeles County.

And, that’s not even the most expensive in California.

The average price rose 2.3 cents to $6.011, according to figures released Tuesday by the AAA and Oil Price Information Service. The overnight surge was the 28th consecutive increase and comes 19 days after prices topped $5 for the first time.

This escalating cost of gasoline and inflation is cutting into the Democrats’ chances for victory in November’s election, even in deep-blue California.

So Gov. Gavin Newsom will fix the problem by throwing more money at it.

Gov. Gavin Newsom announced the details of his gas rebate proposal Wednesday, which includes $400 direct payments for car owners who have vehicles registered in California.

The governor made the announcement in a press release Wednesday, estimating the program would cost $11 billion total, with $9 billion of it being used for the rebates.

The program would provide the funds through debit cards, and each individual would be eligible to receive up to two payments. For families with more than one vehicle, payments would be capped at two vehicles.

Of course, there is no talk of the state using its oil resources to alleviate the problems. There are no tax reductions to help reduce the burden on citizens. There are simply more bureaucratic rules about who can and can’t get a debit card.

The plan is to send $400 debit cards to vehicles owners for up to two cars. People who own electric or other vehicles that don’t use gasoline would qualify. Most businesses with fleets of vehicles would also not be eligible. Newsom said the rebates alone would cost the state about $9 billion.

“That direct relief will address the issue that we are all struggling to address, and that’s the issue of gas prices,” he said.

Regular grade gas is a state record-breaking $5.88 per gallon in California, about $2 more than a year ago, according to AAA.

I drive a Honda CRV. It’s hardly a gas-guzzler, but it still cost $65 to fill my tank the other day. By my calculation, that will pay for six tanks of gas…which should get me through the next two months.

But what happens after the debit card is tapped out? Furthermore, by pumping more money like this into the system, inflation will accelerate. It was already at a historic 7.5% in January, a level not seen since 1982.

I am not the only one skeptical of this proposal.

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Comments

Renewable energy? Seems to me the only energy that is being renewed is anger against these dangerous policies.

I drive a Honda CRV. It’s hardly a gas-guzzler,

Same here… and GA is giving a $500 tax rebate to residents, but Kemp is calling it a stimulus check.

I don’t qualify.

We are both skeptical, the future seems dark.

JackinSilverSpring | March 25, 2022 at 7:45 am

Subsidizing the purchase of motor fuels will do nothing to alleviate consumers’ pain at the pump. The subsidy will increase demand without increasing supply, and that means the price will go up, most likely by the amount of the subsidy. The only way to get the price down is by increasing supply. As long as this wacky war on the production of domestic fossil fuels continues, the only direction pump prices will go is up

“If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

Rinse, repeat.

The hypocrisy is breathtaking. They are against oil and gas until their constituents start suffering and then it’s full speed ahead supporting oil and gas. If you are going to have values such as the corrupt and dishonest ones associated with the highly questionable global warming threat then at least have the courage to stick by them. But, no, you cannot even do that so what do you really stand for besides yourself?

    venril in reply to Cleetus. | March 25, 2022 at 10:20 am

    Next they’ll cry for price controls. Then cry about shortages. Then cry about ….

      drednicolson in reply to venril. | March 26, 2022 at 3:50 pm

      Supply is where the command economy falls apart. No amount of executive decree will make more fuel magically appear.

Lucifer Morningstar | March 25, 2022 at 9:01 am

However, the average price in California is over $5, and in some parts, it is over $6.00.

The average price for a gallon of regular gasoline is now above $6 in Los Angeles County.

Of course gasoline costs significantly more than elsewhere in the country. And that’s not because of the shortage & price of oil. Though that doesn’t help. It has to do with the fact that California forces the gasoline producers into producing a reformulated gasoline that is only used in California and nowhere else in the United States. And that costs money for the gasoline producers. So you’ll have to excuse me when I say Californians can cry me a river when they complain that their gasoline is so expensive. It’s your own damn fault.

(I drive a Honda Civic. And what once cost me a little over $20 to fill from empty under Trump now is costing me more than double at $46 to fill under Biden. And I don ‘t get any handouts from the state I live in.)

This will not affect inflation since CA cannot print the money; they have to allocate it from their budget. But it does beg the question what is the purpose of levying taxes only to give it back. Suspend the gas tax in an equal amount as the $400 debit cards. Of course they can’t because that benefits only car owners and not homeless tent people or teacher’s unions.

    venril in reply to George S. | March 25, 2022 at 10:19 am

    Or offer a tax write-off for gas-to-work. But no give-aways of cash, please.

    Gosport in reply to George S. | March 25, 2022 at 2:10 pm

    It’s sort of an inflation issue as gas cards become an alternate currency that competes with cash for limited goods. This is especially contentious if CA doesn’t have the money to back them. Those gas cards are as fungible as cash. Don’t be surprised when they begin to appear as payment in drug deals and such.

    The obvious purpose of the program is cash redistribution to buy votes. It would also appear to be extremely easy to corrupt by controlling who receives them. CA drivers license only? Registered car owners?

Ever notice that their solutions to the problems they and responsible for always comes at the expense of the taxpayer?

How long until the citizens realize that $11 billion price tag represents their own tax dollars being used to pay them off and keep them quiet? (And who gets the other $2 billion in overhead?)

This smells like nothing but another attempt to get people addicted to “government” handouts.

    Lucifer Morningstar in reply to Idonttweet. | March 25, 2022 at 10:10 am

    (And who gets the other $2 billion in overhead?)

    The banking industry. Because you don’t really believe they’d issue millions of debit cards & allow them to be processed through their systems for free did you?

      Coming attraction is the Central Bank taking on maintenance of deposit accounts. Imagine how much easier it will be to encourage consumers to spend their money on the preferred items.

      The number of stolen cards is going to be epic. Scammers will be able to spot the distinctive envelopes and grab them wholesale out of mailboxes and postal trucks all over the state.

Correct me if I’m wrong, but this redistribution of wealth all began under FDR. I wish we can go back to where government kept its hands out of my pockets and bank accounts

    Gosport in reply to Phil. | March 25, 2022 at 2:19 pm

    I think that government in the US having excess cash to toss around came when we had the first non-wartime national income tax, the Revenue Act of 1913. What a Pandora’s box that turned out to be.

It’s like cutting someone with a razor and offering them a bandaid.

Antifundamentalist | March 25, 2022 at 3:55 pm

Wouldn’t it make more sense to rescind some of California’s fuel taxes for a bit?

why isn’t this means tested, some person with a bentley or rolls royce can certainly afford to fill their tanks anytime they want?
why would an ev owner get yet another government handout?

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