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Gas Taxes

July 21, 1993

In your July 14 editorial, "There Is No Free Deficit Reduction," you correctly state that gas prices (when adjusted for inflation) are at their lowest levels since World War II. What you incorrectly state is that California motorists now pay combined state and federal taxes of 29 cents per gallon. In fact, California gasoline consumers pay taxes of 39 cents per gallon, which will automatically increase to 40 cents next year. The current state tax on gasoline is 25 cents, plus the federal tax of 14 cents.

California's economy and job base will suffer further with another tax increase. We agree with The Times that "there is no free deficit reduction." It is important for motorists to understand that when considering the pros and cons of a gasoline tax increase, gas taxes total roughly 30% of the current price, and they have more than doubled in the past 10 years.

DOUGLAS F. HENDERSON

Executive Director, Western States

Petroleum Assn., Glendale

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