California is considering a 5% severance tax on oil extraction from California to provide  billions of dollars for education. I can hear the hue and cry, NO MORE TAXES.  Not all taxes are bad. The oil industry pays less than 1% severance taxes to California, but Alaska get’s 50%. Wyoming gets 45.4 %, and N.D. a state that is booming right now, gets 5%. Texas get’s 66% in three different taxes, value of oil as it comes from the ground, a clean-up tax and a “regulatory” tax.Thirty-four states get oil severance taxes.

I see something wrong with this ballot measure.  California needs to charge 15% because we have heavier environmental safety formulas for gas. We are providing our neighbors with cleaner air at our expense. And, we watch the oil company profits soar into the billions each year as they laugh their way to the bank.  And, we watch Federal subsidies on oil. I call it theft of our tax monies levied to get friendly senators and representatives to keep it going.

Charging a 15% severance rate, could be applied to lower state taxes at the pump by 5%, for our gas.  Put 5% towards strengthening education, and 5% toward transportation.

Whether you use it or not, public transportation benefits everyone. It connects people to jobs, and community services. It reduces pollution and eases congestion. It helps create local jobs and strengthens the economy. Studies have proven that to be true. Our future has to be infrastructure that takes an investment and commitment from our local officials as we move away from gas guzzling cars, especially in cities.  We need it.


Education has gotten so expensive that kids without job prospects, start life with student debt. Core classes are not always available, meaning it takes longer to fulfill requirements..  Elementary education has suffered draconian cuts year in and year out and deserves a boost.  We penalize the very thing that will energize our society and make us a leading state again. Lets put California  back on the map.

Tax the right industries, those that pollute and damage, and reward those that enhance our society. Isn’t that a good idea?

Categories: Uncategorized | Tags: , , , , , | 4 Comments

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4 thoughts on “NOT ALL TAXES ARE BAD.

  1. stitchinstein

    I’m no oil and gas scholar but every time a tax is levied the end result is that the price at the pump goes up. ‘In the name of the children’ our legislators have kept many in the same poverty they espouse to eliminate.

    • 2gadabout

      It is disheartening, yet without public works projects, where are we? And, let me tell you, Texas and N.D. are booming. I’ve been to both places in 2013. In fact, in Texas it seems like three out of four people work in the oil industry.

  2. I hope they do better. I have watched other states use education as a reason for some new tax. If the tax is approved there will be some high profile education something started. As years go by people begin to question why education is not better and start to learn that tax dollars goes into a massive general account without checks and balances of how to move the money for its allocated intentions.

    • 2gadabout

      Of course, some bills can stipulate money can ONLY be used for thus and so. I’ve seen that work.

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