California drivers normally catch a bit of a break this time of year when gas stations switch over to winter blends, which usually run about 12 cents a gallon less than summer-blended fuel.
But this year, the switch will coincide with the rollout of a state law to increase the price of gasoline by 12 cents a gallon.
In essence, the hike in the gas tax will nullify the reduction in price associated with the transition to winter fuel.
We know this destructive gas tax will disproportionately hurt working families and struggling small businesses, but unfortunately the list of new burdens does not stop there. Governor Brown signed a slew of additional bills which will make California even more hostile to small business.
California no longer should give specific tax incentives to businesses and instead should provide broad-based tax relief, the state's nonpartisan Legislative Analyst's Office said in a new report.
The analyst's office examined California Competes, a program that began four years ago to give tax credits to businesses looking to move to the state or remain here, and found it puts existing companies that don't receive the awards at a disadvantage without clear benefits to the overall economy.
"Picking winners and losers inevitably leads to problems. In the case of California Competes, we are struck by how awarding benefits to a select group of businesses harms their competitors in California," the report said. "We also think the resources consumed by the program are not as focused as they should be on winning economic development competitions with other states to attract major employers that sell to customers around the country and the world."
The executive branch has made a good faith effort to implement California Competes, but the problems described above are largely unavoidable. We recommend that the Legislature end California Competes. In general, broad‑based tax relief—for all businesses—is preferable to targeted tax incentives.
The U.S. economy grew robustly in the third quarter despite two hurricanes, propelled by steady spending from American businesses and households.
Gross domestic product, the broadest measure of goods and services made in the U.S., expanded at a 3% annual rate in July through September, the Commerce Department said Friday. Economists surveyed by The Wall Street Journal had projected a 2.7% gain.
Output expanded at 3.1% rate in the second quarter. This marks the economy's best six-month stretch since mid-2014.