Californians may tax the rich more to subsidise electric cars

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Californians may tax the rich more to subsidise electric cars
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A fight over the proposal exposes three larger issues facing the Golden State

, California’s Democratic governor, has presented himself as an environmental warrior, pushing for aggressive rules to reduce greenhouse-gas emissions and ban the sale of petrol-powered cars from 2035. So when Mr Newsom recently began appearing in television adverts encouraging voters to reject “Proposition 30”, a ballot initiative to increase taxes on the wealthy in order to fund electric-vehicle expansion, it turned heads.

Some of it has to do with how Prop 30 has been bankrolled. Prop 30’s biggest backer is Lyft, the ride-hailing firm, which has spent around $35m to support the measure . Critics, including Mr Newsom, say that Prop 30 is a way of getting taxpayers to foot the bill for Lyft going green. Starting in 2030, California will require 90% of miles travelled by ride-sharing firms’ drivers to be in electric vehicles.

Second, Prop 30 highlights the potential downside of direct democracy. California allows for citizens to bring forward ballot initiatives, if they collect enough signatures to qualify for the ballot . “We can have the best legislature in the world, and then some company can go around us and raise taxes,” says Mr Crane, who worries that if Prop 30 passes it will embolden more companies to try to push ballot measures that benefit them.

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