Yes on Prop. 87
By: North County Times Opinion Staff | ∞
Our view: Using severance tax for alternative energy is more than reasonable.
California has already taken the lead on scientific innovation with its stem cell research initiative. And with the greenhouse gas limits agreed to by the governor and state lawmakers this summer, the state is taking the lead on finding solutions to global warming.
With Proposition 87, we have a chance to take the lead on both scientific innovation and developing alternative fuels. Vote yes on Prop. 87.
Prop. 87 would impose the state's first severance tax on oil extracted in California to pay for research and incentives to find and use alternative energy sources.
We're the nation's third largest oil producer, pumping 230 million barrels a year. The top two oil-producing states have severance taxes. In Texas, it's 4.6 percent of the value of the oil. In Alaska, it's 12.25 percent. California's would range between 1.5 percent and 6 percent, depending on the price of oil at the time.
Imposing a severance tax is not unreasonable, and even without the language in Prop. 87 barring oil companies from passing the tax on to consumers, it wouldn't raise prices at the pump. Oil prices are controlled by a global market, which sets the price. Alaskans don't pay more for gas because their state has the largest severance tax.
The best part of Prop. 87 is that it would spend $4 billion during the next 10 years to find alternative energy sources. A quarter of that will be pumped into the state's universities for research. The rest will go toward taking the research from the lab and into our gas tanks ---- or replacing them altogether ---- and providing incentives for using alternative fuels.
All of California's severance tax would be used to wean us off petroleum. That's a good place for this money, and 10 years from now, the whole nation might be grateful we made that investment.
Vote yes on Prop. 87.
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Kiki wrote on Nov 3, 2006 11:03 AM:SOUNDS reasonable, but in reality and practicality it is totally sensless! All 87 will accomplish is putting many oil companies out of business in California. This will limit competition, and the remaining companies will charge what they want for gas. If you think the price is high now, wait till we are stuck with one or two suppliers and no other viable alternatives. If the technology were in place for other energy and fuel sources, this might be an option. BUT NOT NOW!!!
Robbin wrote on Nov 3, 2006 12:30 PM:This Prop. is a really bad idea! When does giving money to a bunch of goverment people with no expectation of progress a smart move? Anyone that says it won't cost everyone more money ar the pumps is in LALA land.
Donna wrote on Nov 3, 2006 5:48 PM:Did you drive to work today? Do you really believe that increasing taxes on an industry will drive Americans to convert to alternative energy? Until there is real shift in US consumption all you've accomplished is an illegal targeted tax on one industry that will result in unfair penalties that we all pay for at the gas pump. Perhaps you can provide your readers with free gas cards to compensate for your lack of vision.
Joe C. wrote on Nov 4, 2006 5:19 PM:Everyone of you that are against Prop 87 are on glue. You think that paying a few extra pennies for a gallon of gas is going to cause the entire economy to collapse. Baloney. It's time to do something. It has cost the US tax payers $330 BILLION dollars to fight the war in Iraq. Just so we can protect our foriegn oil interests in the Middle East. You are all crying about $4 billion over 10 years. Come on, get a grip!
dennis wrote on Nov 5, 2006 8:16 AM:ARE YOU CRAZY??? Voting Yes on 87 will create more beaurocracy and unaccoutable spending by a bunch of politically appointed hacks. We need alternative energy yes, but taxing what we produce here in CA is surely not the answer. Creating beaurocracies is not the answer. Research is the answer and can be done with existing tax money if the politicians stopped wasting it. Get real....you are the only paper endorsing this....come out from behind your desk and take those halloween costumes off ...for God's sake do not promote more taxes for Sacramento to squander.
Perry S wrote on Nov 5, 2006 4:38 PM:I already use biofuel, and it has become clear that biofuel competition is now what caps the price of petroleum and motor fuel. And limits the ferocity of war we are in with Arabs, and gives us opportunities for growth for the future, along with other renewables. The oil companies' claim that if you give them more competition they are going to have to raise your price is a whopper.
Tom wrote on Nov 6, 2006 1:07 PM:Yes, I say target the Big Oil companys. Make them pay, pay, pay. They have been ripping us off for years and now if payback time. They owe socitey TRILLION$ for all of the damage that this industry has caused.
Patrick wrote on Nov 6, 2006 4:11 PM:3 dollars a gallon and higher in San Diego proved a tax has nothing to do with high prices at the pump. California is the only state without this extraction tax residents of Alaska get a check from the oil company!
John wrote on Nov 7, 2006 9:40 AM:Don't be fooled by big oil's no campaign. It WON'T RAISE GAS PRICES - BY LAW IT CAN'T - and it won't put oil companies out of business. Other states already have a severance tax and it's a drop in the bucket for companies like Exxon that can afford to pay outgoing CEOs 400 MILLION. Cmon. Why do you think companies like BP and Shell are investing in solar. It's the future - unless you want San Francisco to have the smog of LA.
Doug wrote on Nov 8, 2006 3:16 PM:Alternative energy like solar are critical and should be available NOW! BUT I am opposed to more taxes PERIOD! Taxes are not the answer, Capitol investment research, implementation and profit are the answer. Tax CREDITS to consumers who solar their entire property may be a part of the answer. If a cleaner cheaper and reliable energy source can be made profitable then it will and should be on the market. IT is the American way! It's called Capitalism, you may not like it but we are a capitalistic society. Lucily we are generally free to explore these private ventures and the inventor can get rich and be hated by all the have nots. Let's face it governmnet needs to stay away so we all don't get run over by the giant money sucking vacum that Government has become. Involving Government in business other than as a regulatory agency (within reason) to enforce the basic law of "Thou shall NOT STEAL "(they can't even do that right) is plan NUTS. Pool your money pro 87 folks, go build your own energy resources and enjoy the American dream.
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