Think people are angry about gas prices? Take a look at California:
While motorists fume over the skyrocketing cost of gasoline, state officials say the extra sales tax revenue from high prices at the pump is proving to be a boon as California faces an $8 billion budget deficit.
And lawmakers are likely to tussle in coming weeks over how to spend the unexpected revenue.
Sales tax receipts from gasoline have been rising sharply over the past five years - from $2.1 billion in 2003, when a gallon of regular unleaded cost an average of $1.88, to $3.8 billion in 2007, when the same gallon cost $3.12, according to the state Board of Equalization.
If gas hits an average of $4 a gallon this year - not an unrealistic possibility considering that fuel prices rose to an average of $3.63 on Monday - state and local governments could collect nearly $5 billion in sales tax on gasoline.
Now, that normally wouldn't be a problem. However, check out this little problem issue:
How the state will close the rest of the gap has been hotly debated in Sacramento, Republicans demanding cuts in spending and Democrats arguing for increased taxes.
Yes with people having budget problems because of the high costs of gas, including one area that has $5.40 a gallon gas, California Democrats are actually asking for MORE taxes. Yet, Republicans are asking to cut government spending.
So, let me ask you this Californians, would you rather shell out more and more money towards a government that's wasting money by the truckful, or would you rather your taxes stay the same and idiotic spending is reigned in?
The choice is yours, either reign in spending, or face less money in your paycheck.
Travis
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