If California is ever to get its budgeting in order, policymakers are going to need to acknowledge that green street cred has a cost and then legislate accordingly. For now, though, it seems they can’t even take the small steps.
California is staring at a $3 billion budget deficit, but Gov. Gavin Newsom still wants to spend $200 million on electric vehicle rebates. It’s both a foolish gesture and a graphic example of why Sacramento can’t get spending under control.
The funds would replace the $7,500 federal EV tax credits for new cars that ended on Sept. 30 through the One Big Beautiful Bill that was passed and signed last summer.
“We must continue our prudent fiscal management,” the governor said in a statement on the proposed budget. “This is what responsible governance looks like.”
Maybe Newsom is banking on an additional $42.3 billion in tax revenues he expects the state to take in over the next three years. But that’s an iffy proposition, given that a proposed wealth tax has already caused an exodus of billionaires who provide a good chunk of California’s income tax revenue.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Newsom budget expands green subsidies taxpayers can’t afford
Kerry Jackson
If California is ever to get its budgeting in order, policymakers are going to need to acknowledge that green street cred has a cost and then legislate accordingly. For now, though, it seems they can’t even take the small steps.
California is staring at a $3 billion budget deficit, but Gov. Gavin Newsom still wants to spend $200 million on electric vehicle rebates. It’s both a foolish gesture and a graphic example of why Sacramento can’t get spending under control.
The funds would replace the $7,500 federal EV tax credits for new cars that ended on Sept. 30 through the One Big Beautiful Bill that was passed and signed last summer.
“We must continue our prudent fiscal management,” the governor said in a statement on the proposed budget. “This is what responsible governance looks like.”
Maybe Newsom is banking on an additional $42.3 billion in tax revenues he expects the state to take in over the next three years. But that’s an iffy proposition, given that a proposed wealth tax has already caused an exodus of billionaires who provide a good chunk of California’s income tax revenue.
Read the entire op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.