Californians have signed enough petitions so that two tax measures will be on the November ballot. One would increase the cigarette tax to make it the most expensive in the state; the other would add an ‘oil severance’ tax, taxing oil production in the state.
The proposed cigarette tax increase would add $2.60 to a pack of cigarettes, making the total cost over $6.50 per pack. That’s a lot of quarters for the vending machine. The new tax would fund emergency rooms and health insurance for children. I expect this measure to pass easily.
The oil extraction tax would be used to fund alternative energy. Proponents also hope to decrease fossil fuel use by 25% in California. Given that the population in California continues to increase, their goal won’t be reached no matter what. In any case, this measure will face fairly determined opposition, especially when Californians discover that increasing oil taxes will increase what they pay at the pump.
News Stories: Cigarette Tax, Oil Extraction Tax