Assembly Republicans unveil cost-of-living bills to tackle gas prices, taxes on tips

Los Angeles Times

27-02-2025

SACRAMENTO — Republican lawmakers on Wednesday said providing Californians much-needed relief from the state's high cost of living will be a top priority this year, though their proposals face a difficult road in the Democratic-led state Legislature.
The bills announced Wednesday morning will tackle prices at the gas pump, create tax credits for low-income renters, and make tips tax-exempt for workers such as bartenders and manicurists.
'This is the No. 1 issue for California voters, the cost of living,' said Republican Assembly leader James Gallagher of Yuba City.
Gallagher introduced Assembly Bill 286, which would order the Public Utilities Commission to lower electricity rates by 30%. The bill is part of a slew of GOP legislation ground in conservative principles of lowering government-imposed costs and cutting taxes.
Assemblymember Diane Dixon (R-Newport Beach) sponsored a measure, Assembly Bill 1443, that would make tips earned by those working in the service industry, barbers and rideshare drivers tax-exempt, an idea similar to proposals supported by President Trump and Democratic presidential nominee Kamala Harris during the 2024 election.
Assembly Bill 12 authored by Assemblymember Tom Lackey (R-Palmdale) aims to repeal the low carbon fuel standard cost enacted by the California Air Resources Board. He and others have raised concerns over projections by the board last year that gasoline prices could go by up to 47 cents a gallon in 2025, an average of 65 cents a gallon between 2031 and 2035.
'In the district I live in, we have over half our population that is in a commuter situation, many of them over a hundred miles a day,' he said.
Another bill in the package, Assembly Bill 838, introduced by Assemblymember Tri Ta (R-Westminster), will offer assistance to low- and middle-income renters. It will provide tax credits to those who are in certain income brackets, and will specifically account for those earning $25,000 and $50,000 annually or less.
'We all know that California is home to some of the most expensive rental markets in the country and due to the high cost of housing in the state,' said Ta. 'It is not uncommon for residents to spend a significant portion of their income on housing.'
Assemblymember Greg Wallis (R-Bermuda Dunes) said he is 'cautiously optimistic' that Democrats in the Legislature will move their package forward.
'Everything should be on the table to make this state more affordable,' he said. 'I'm hopeful we can find bipartisan solutions.'
Wallis introduced Assembly Bill 121, which would be the largest tax cut to cut personal income tax, reducing it by 1%. The bill would revise the income tax rates and taxable income brackets by imposing an income tax rate of 3% instead of 4%, according to the bill.
'I live in Coachella Valley,' Wallis said. 'One of the reasons I ran for office was because too many friends and family were leaving the state.'
Democrats have introduced an array of affordability bills including one proposal by Assemblymember Alex Lee (D-San José) to make CalFresh, the state's food stamp system, permanent.
A bill by Assemblymember Isaac Bryan (D-Los Angeles) would increase access to free dental and vision screenings for thousands of housing-insecure students.
Another bill package from Assemblymember Pilar Schiavo (D-Chatsworth) proposes plans to assist foster youth by improving housing stability and providing financial assistance to patients seeking medical care who already have medical debt or are already experiencing homelessness.