California lawmakers are changing the way electricity is billed to households. Instead of paying for how much electricity one uses, they will also be taxed based on how much they make.
A draft of the new law requires people earning $28,000-$69,000 to be charged an extra $20 to $34 per month. Those earning $69,000-$180,000 would pay $51 to $73 per month, and people earning more than $180,000 would pay a $85-to-$128 monthly surcharge.
“Since when does CA residents making $28k annually qualify as “rich”? Anytime a politician introduces a plan to “tax the rich,” the middle class and under always pay the price,” Burton Brink, former Sergeant-LA County Sheriff’s Dept, said on X.
The California Public Utilities Commission has until July 1 to implement the new rule into the billing process.
“This would be the first state to charge people based on their income rather than what they actually just use,” Shon Hiatt, director of the USC Business of Energy Transition initiative, told Fox Business.
Californians already pay a premium for energy. According to Energy Sage, California residents pay 32 cents per kilowatt-hour compared to the national average of 18 cents per kilowatt-hour.
“The assumption is, ‘Well, if you’re making $100,000 in the state, you must be super-wealthy,’” Hiatt said. “But what if you have five or six kids? Will they be treated the same as a single head of household?”
There are privacy and security concerns as questions emerge about which agency will be responsible for obtaining tax information to determine people’s income.
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“It would be nearly impossible to implement given the many legal and privacy challenges that there would undoubtedly be to accurately determine every taxpayer in the state’s income,” Jacqui Irwin, a Democratic state representative, said. She said she was originally in favor of the new law, but changed her mind after voting in favor of it.
“Our constituents have had enough and so have we,” Irwin said. “It’s time to put some reasoning back into how we charge for electricity in California. At a time when energy conservation is badly needed to avoid rolling blackouts, this dramatic policy shift could actually result in increased usage by some Californians.”