One bill introduced in the state legislature last January would exempt gasoline, as well as federal and state excise taxes, from these additional state, local, and special district sales taxes. In doing so, lawmakers assert they would avoid unfair double-taxation and relieve Californians of heavy gas prices. While this is a step in the right direction, more can be done. Lawmakers should move to revoke the 18 cent per gallon state excise fuel tax as well. Cutting these taxes would have a positive impact on the state's economic growth.
Tax cuts are important to economic growth.
Government spending is directed by politicians who think they know what consumers want and who control how taxpayer money will be spent. Meanwhile, private sector spending is driven by consumers who know their own needs. By lowering taxes, individuals would have more money and greater choice in determining how their earnings will be spent. Tax cuts would stimulate private spending and investment in capital such as machinery, equipment, buildings, and job training. As private sector spending goes up, a rising demand for more goods and service would spur California companies to increase production and create more jobs.