CalMatters: Is Newsom’s gas profits penalty really a tax? ...Middle East

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When Gov. Gavin Newsom launched his crusade against what he called blatant price-gouging on gasoline by oil refiners, he called for taxes on excess profits. At the time, gas prices had soared to more than $6 a gallon in some locales, a couple of dollars higher than those in other states, and Californians’ pain at the pump symbolized the soaring inflation that was ravaging household budgets. However, when Newsom finally outlined his proposal this week, the tax approach had been abandoned and instead, he said he wants petroleum companies to be docked civil penalties by the state Energy Commission if they exceed designated profit margins. “California’s price gouging penalty is simple — either B

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