Prop 87 - Alternative Energy. Research, Production, Incentives. Tax on California Oil Producers. Initiative Constitutional Amendment and Statute
My Summary: Straight from the voter guide: "Tax of 1.5% to 6% (depending on oil price per barrel) on producers of oil extracted in California. Prohibits producers from passing tax to consumers."
My Opinion: More taxes! Once again, higher taxes are a bad thing. How producers would be prohibited from passing it on to consumers, I have no idea. It’s simple economics, as Tom McClintock points out: "When you tax something, you get less of it and the price goes up." These taxes would supposedly go to researching alternative fuels and such. My opinion on this topic is this: private business will handle it. If it is economically feasable to use alternative fuels, private business will be there to turn a profit. Aside from private business, the only alternative fuel policy I would support is a government sponsored, nationwide program like Brazil has done with ethanol. Little pet projects like this prop are just a waste of money.
Bottom Line: I went 26 days between my last two fill-ups, so I don’t think gas prices or alternatives are really that necessary. If Toyota can turn a profit with a Prius, they will. If not, it doesn’t make any sense.
I am voting NO on Prop 87.
