State Lawmakers Want to Repeal Gas Tax, But Experts Warn Against It

California Republican lawmakers came together Monday to call on the state to repeal its 50-cent gas tax as pump prices continue to set records daily.

However, some economists think cutting the tax could do more harm than good.

Drivers say the higher gas prices are hitting them hard, and some are already putting the brakes on nonessential trips to try to save as much money as possible.

Others say they have to drive, so they're cutting back elsewhere.

Such is the case of university student David Lima, who has seen the cost of his weekly commute skyrocket.

"Now I'm spending about $200 every week," he said, "and as a full-time student, it kinda sucks because I have to cut some corners."

Among other cuts, Lima said he doesn't go out on weekends anymore.

In the first few days after Russia invaded Ukraine, plenty of drivers said they'd be willing to pay at the pump if it meant punishing Russia. But with prices continuing to rise almost daily, some now have questions about how long this will last.

"I don't know what is the reason it's more expensive," said San Francisco resident Max Montecinos, "because we only get 1% from Russia, and I don't know why it's expensive here."

Speaking outside a gas station in Sacramento, several Republican lawmakers lobbied for a trio of bills that would either pause or eliminate California's 50-cent-per-gallon tax.

This is a move critics have said would only hurt California's infrastructure spending.

"We can do this," said State Assembly Member Suzette Valladares. "With the surplus that we have, we can backfill projects in transportation, which is why we have this additional tax for infrastructure."

Meanwhile, economists who study the energy sector warn that cutting the gas tax may not provide any relief to customers. It could in fact permanently cut infrastructure funding if suspended indefinitely.

"Part of that gas tax reduction will be captured by the producers of gasoline," explained Andy Campbell, executive director at UC Berkeley Energy Institute, "maybe the gas stations, maybe the refineries."

There are other options on the table as well.

During his State of the State address, Gov. Gavin Newsom suggested rebate checks sent directly to California drivers, funded in part by the state's projected budget surplus.