In August, the California Air Resources Board (CARB) voted to ban gas-powered cars by 2035. At that time, the measure requires all new cars and light trucks sold in the state to not emit carbon and other greenhouse gases in order to lower the state’s carbon emissions. Despite President Joe Biden’s Inflation Reduction Act, which allows rebates up to $7,500 for new electric vehicle purchases, low-income California residents may struggle to purchase electric vehicles if the 1.75 percent tax proposed by Proposition 30 doesn’t pass.
What is Proposition 30?
If passed, the proposition would implement the tax on residents earning $2 million or more annually. Despite supporting a push to go all-electric, Newsom is throwing money at an effort to block Proposition 30. The Democrat is heavily favored to win his reelection, but Proposition 30 has a much tighter margin.
Who Is Against Proposition 30?
Local News Matters reported that funding against the proposition has skyrocketed since August when less than $1 million had been donated to block the effort. Funds to block Proposition 30 have since soared past $14 million, cushioned by a more than $1.6 million donation from Newsom’s 2022 reelection campaign made on November 2, according to a contribution report.
“Prop. 30 is a special interest carve-out—a cynical scheme devised by a single corporation to funnel state income tax revenue to their company,” Newsom said in a statement emailed to Newsweek from his campaign.
“California’s tax revenues are famously volatile, and this measure would make our state’s finances more unstable—all so that special interests can benefit. Californians should know that just this year our state committed $10 billion for electric vehicles and their infrastructure, part of a $54 billion nation-leading package to fight climate change and build a zero-emission future. Don’t be fooled. Prop. 30 is fiscally irresponsible and puts the profits of a single corporation ahead of the welfare of the entire state.”
A Daily Caller article reported that Newsom has argued that the measure is “fiscally irresponsible” because it solely benefits Lyft, a rideshare company. Last year, the CARB passed a measure requiring rideshare companies like Lyft and Uber to use zero-emission vehicles for at least 90 percent of their miles by 2030. According to No On Prop 30, a coalition against Prop 30, Lyft drafted the proposition to place the question on the ballot.
“This measure is an attempt by the rideshare company Lyft to get taxpayers to foot the bill for Lyft transitioning to the use of electric vehicles,” the website said.
Who Is For Proposition 30?
San Francisco Chronicle reported that Lyft has donated nearly $15 million to the effort to pass Proposition 30. According to a Fox News article, if passed, the tax would generate up to $5 billion a year. Nearly half of the money would fund rebates and incentives for electric vehicle purchases, 35 percent would fund charging stations with half of the stations designated for low-income communities and 20 percent would be directed toward wildfire prevention programs.
Yes On 30, a coalition in favor of the proposition, advocated for the proposition. Its website said wildfires and transportation emissions contribute to making California’s air quality “among the worst in the world,” and advocated for action to prevent wildfires and reduce carbon emissions from vehicles.
“To solve this crisis, we need to address the two main sources of air pollution and climate change in California: transportation emissions and wildfires,” the website said. “We need an immediate, sustained investment to 1) fight and prevent wildfires, and 2) reduce air pollution from vehicles.”
Organizations backing the coalition included Lyft, the American Lung Association, the California Democratic Party and many others.
Energy advocacy group Power the Future Communications Director Larry Behrens said Newsom’s actions favored elitists.
“Governor Newsom has proudly banned gas-powered vehicles which will force working families to shell out thousands for his Green New Deal policies,” Behrens said in an email to Newsweek. “His constituents have endured numerous electric blackouts while he ignored their struggles. However, the moment Newsom’s rich friends are asked to pay more for a failed agenda he can’t slam on the brakes hard enough.”
Will Proposition 30 Pass?
In the last few months, donations against the proposition have skyrocketed, decreasing the chances Proposition 30 will pass. In August, when funds against the proposal were smaller, the proposition was expected to pass at the ballots. Now, a new poll by the Public Policy Institute of California shows only 41 percent of voters voting in favor of the measure.
Newsweek reached out to Lyft and Newsom’s campaign for comment.
Update: 11/04/22 5:04 p.m. ET: This article was updated with comment from Gavin Newsom and Larry Behrens.
