Prevent a political tangle on Nov. 7 by voting “no” on Proposition 87.
Stop the $4 billion oil tax before it becomes a reality for all Californians.
Proposition 87 is an initiative on this year’s California ballot that proposes for a $4 billion tax on in-state oil production. Supporters are dancing around an illusion of revenge on big oil companies by making them pay for cleaner energy.
Our record-high gas prices are enough incentive for privately funded alternative fuel research, making it ridiculous to spend further tax dollars on it.
Prop 87 says a percent tax would be paid for each barrel of California-produced oil. This is a problem of loose ends because it is yet to be determined whether barrels would be taxed at a “standard rate” of $4.20 for every $70 barrel of oil, or a varying marginal rate based on the price of an individual barrel which would likely produce less revenue.
Unfortunately, the truth remains that a higher tax on in-state oil production would actually decrease in-state oil production. This would ultimately lead to an increased dependence on foreign oil, which is just the opposite of proponents’ claims that Prop 87 will decrease our foreign dependence.
California already produces about 40 percent of its oil used but also pulls about 20 percent from Alaska, leaving the remaining 40 percent of oil supply from foreign imports.
Imposing a penalizing tax will only discourage in-state production. Simple economics tells us that imports equal higher prices, so we can look forward to higher costs at the pump if Prop 87 passes.
Supporters have nothing more than hope behind claims that the initiative will forbid oil companies from passing the tax onto the consumer. Oil companies cannot be be expected to be taxed and not do anything to counter their new expenses.
Is this all beginning to look a bit counter-productive? That’s a good question to ask yourself before placing $4 million in the hands of 50 political appointees who will construct a fresh bureaucracy with entirely too much power.
There is absolutely no reason to trust 50 people to spend billions of our tax dollars with absolutely no accountability.
The political appointees will not even be required to comply with conflict-of-interest laws, making the spending, more or less, a free-for-all.
Prop 87 will not benefit schools. Almost half of the $4 billion tax fund would be shared with schools if the money were to be handled like general fund revenues.
Instead, schools will see none of the money, and it would take at least a decade for the money to be distributed towards academic research and various businesses.
Prop. 87 supports a worthy cause but simply lacks the assurance needed to be a reliable bill. If Prop 87 passes, no one will be paying except for us voters. It is a timely plan of deception for pressuring voters to say “yes” this election.
We don’t need Prop 87.
