
California’s Oil Production Taxes are Already Some of the Highest in the Nation
The Governor proposed, and the Legislature is considering, imposing a 9.9 percent severance tax on oil production in California.
The chart(shown below) shows where California compares to other oil generating states. The bottom line is that California is already among the most heavily taxed states in the country relative to oil production. If the Legislature agrees to impose this new oil tax, California’s combined taxes on petroleum would make it far and above the highest taxed state in the nation.
In addition, the new oil tax will reduce the supply of oil produced in California, result in close to 10,000 lost jobs in California, and increase our dependency on oil imports (including from Venezuela, which is presided over by despotic leader Hugo Chavez). Since the transportation, distribution and refining cost of importing oil are greater than the costs associated with California oil production, consumers will pay higher gasoline prices as a result of the severance tax.
Source: An economic and… Read More