Los Angeles Area Truckers, Local Distribution Centers, and Business Leaders Rally to Delay New Hidden Gas Tax

Tank the Tax” effort is launched to stop the hidden gas tax that will result from fuels being placed in the “cap and trade” program

Local leaders gathered today for a rally to urge legislators to delay a hidden gas tax to that will spike gas prices starting next year. The new tax was created and approved through by California Air Resources Board (CARB) and would drastically hike up the cost of gas and diesel in California.

Starting January 1, 2015, CARB will be moving fuels under the cap-and-trade program to be traded in the state-run carbon market where fuel providers must buy “carbon allowances” to continue to sell fuel in the state. However, CARB made a strategic decision to also allow third party traders to participate. Third party traders can drive up prices increasing corporate and state profit by driving up the costs of allowances. Even without manipulation of the market, the new tax will cost consumers at least $2 billion dollars next year.

CARB’s system is putting gas prices in the hands of Wall Street, which can cause “wild fluctuation without notice” according to Senate Pro Tem Darrell Steinberg. A delay in moving fuels under cap-and-trade is needed so CARB can understand the impacts of the new tax and inform businesses and consumers about the tax.

“There is no way businesses can be prepared for the cost of fuel when it fuel prices are determined by an unpredictable market,” says Steve DeHann, President/CEO of the International Warehouse Logistics Association (IWLA). The IWLA is made up of members who run distribution centers which house and ship goods throughout the state. “I don’t want to raise prices on the goods we distribute from our warehouses, but I am going to have to. There is no way any company can swallow the burden a new high tax.”

Working families and small businesses will be the ones carrying the heavy burden of the new gas tax. Higher gas prices make driving to work, taking kids to school or going to the grocery store that much more expensive. The worst part of the new tax is that Californians are unaware and unprepared for this drastic increase in fuel prices.

“CARB has done no outreach on this new tax that has the potential to hurt many businesses and families,” say President of the Harbor Trucking Association Mike Johnson. “Any new tax without public awareness or input from the public or their elected officials is outrageous. Regulators need to be transparent and responsible for informing and preparing the state for this new tax.”

As gasoline prices increase, it will take a larger share of the working poor and middle class budgets, which leaves even less to spend on produce, police patrols and electricity which will cost more if gas prices skyrocket. The same goes for businesses whose goods must be shipped from place to place in state. Higher gas prices make it more expensive for households to purchase everyday necessities.

The group is calling upon the legislators to stand up against this new hidden tax. If this tax is implemented it would be the largest levied taxed established without voted on by voters or the legislature. Without action, Californians will unfairly be subject to skyrocketing prices at the pump. More research needs to be conducted to better understand the impact of the new gas tax on consumers and our businesses.

Delay the tax, help the people and create a better carbon reduction program.

For more information please visit www.tankthetax.com