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California Libertarians: Scrap Car Tax

14 May 1998

Car Needs to Be Scrapped, Says Libertarian Party of California

    LOS ANGELES, May 14 -- The Libertarian Party of California,
joining a growing chorus of supporters, has officially endorsed AB 1776, a
bill that would repeal California's car tax, State Chair Mark Hinkle announced
today.
    The bill by Assemblyman Tom McClintock (R-Northridge) would completely
phase out the state's punishing car tax - formally known as the Vehicle
License Fee - by 2003.
    "Libertarians have always led the fight against excessive taxation,"
declared Hinkle.  "Getting rid of the car tax sends a clear message to
lawmakers: car owners are being driven crazy by taxes and aren't going to
take it anymore."
    California drivers pay an average of $185 per vehicle annually in
Vehicle License Fees, amounting to nearly $4 billion a year.  "The Vehicle
License Fee is nothing but a property tax on your car," said Hinkle.
"It's time to put the brakes on this tax once and for all."
    The car tax was established in 1935 to pay for highways and related
services.  Today, revenues from the Vehicle License Fee are spent almost
entirely by local governments on health and social services programs. "Taxing
cars to pay for health and welfare programs makes as much sense as driving a
convertible in the rain with the top down," noted Hinkle.
    The Assembly Committee on Revenue and Taxation had scheduled to hear
the bill last Monday, May 11, but Assembly Democrats who oppose the bill
pulled it from the schedule at the last minute.
    Yesterday, Governor Pete Wilson proposed slashing the car tax 75% by
2002 as part of his revised budget for the upcoming fiscal year.  "That just
doesn't go far enough," said Hinkle.
    Repealing car taxes has become a popular issue around the country.
Virginia Governor James Gilmore made repealing that state's car tax the
centerpiece of his campaign.  Georgia and South Carolina are also weighing
proposals to abolish their car taxes.
    "Car owners across the country agree: the car tax needs to be ended,
now," demanded Hinkle.  "The Libertarian Party of California urges lawmakers
to put the pedal to the metal and pass AB 1776.  As long as Californians
continue paying the Vehicle License Fee, they will continue
feeling like victims of a political hit and run."

SOURCE  The Libertarian Party of California