California regularly has the highest gasoline prices in the country.
So, Newsom came up with the idea of capping private industry profits.
The plan came about via a special legislative session focusing solely on the oil industry.
Penalty, Not a Tax
Newsom is doing a workaround by calling this a penalty, not a tax.
He stated, “California’s price gouging penalty is simple – either Big Oil reins in the profits and prices, or they’ll pay a penalty.
“Big oil has been lying and gouging Californians to line their own pockets long enough.”
Could that possibly be because the cost of doing business is so much higher in California?
Kevin Slagle, spokesperson for the Western States Petroleum Association, responded, “Nobody likes high gas prices. No one wants to hear about companies making a lot of money when things are tough, but it really comes back to the market.
“When there’s high demand, earnings are going to be higher.
“When there’s low demand, earnings are going to be lower.”
I am just waiting for oil companies to just pack up shop and refuse to do business in California.
I know it will not happen, but that sure would be a hoot to see!
Source: Fox News
