Phillip Cuaresma: Where is all that gas-tax money going?
Re: “Pelandale Avenue project in peril” (Page 1A, Feb. 19): The article states that “Drivers in California are consuming more fuel than ever, but low prices ... are bringing in less tax revenue.”
The articles also states the drop in tax revenues could cause the Pelandale overcrossing project to be delayed halfway through. In California we pay 32 cents a gallon in state taxes and 18.4 cents in federal taxes. We pay 50.4 cents in taxes on each gallon no matter what the price, plus another 2.5 percent in sales taxes – plus any additional sales taxes added to that. So though they are getting less in sales tax, an increase in the taxes charged per-gallon each gallon, it would seem they would offset each other. Of note is Gov. Jerry Brown recently proposed raising the per gallon state tax. Is threatening to pull funding for projects just another ploy to get more tax money?
Phillip Cuaresma, Turlock
This story was originally published February 19, 2016 at 12:49 PM with the headline "Phillip Cuaresma: Where is all that gas-tax money going?."