California Dumps Lyft-Backed Proposal to Tax Rich For EVs And Green Initiatives

by Anusuya Lahiri, Benzinga Editor
November 10, 2022 8:39 AM | 2 min read |
  • California voters quashed a ballot measure that sought to tax the state’s rich for its planned transition to electric vehicles and other green initiatives.
  • The rejection dealt a blow to ride-hailing company Lyft, Inc LYFT and the environmental groups that had backed the proposition, the Wall Street Journal reported.
  • Lyft was the most prominent financier of Proposition 30, contributing more than 97% of the roughly $50 million raised to promote it. 
  • Also Read: Lyft Goes Aggressive To Win Higher Market Share, Slashes Fee By Almost 50%
  • The environmental groups initially proposed the measure, and Lyft later funded the same. 
  • The measure proposed an additional 1.75% tax on income earned over $2 million. 
  • Some 80% of the $100 billion tax revenue it could have generated over the next 20 years would have gone to charging stations and motivating consumers to buy electric vehicles.
  • Opponents of the measure argued that no new tax is needed because the state is already investing in similar green measures. 
  • Under California Gov. Gavin Newsom, the state has carved out $10 billion for use over the next six years to build charging infrastructure and offer rebates to consumers switching to zero-emission vehicles.
  • Proposition 30 would have raised the state’s top income-tax rate to 15.05% from 13.3%. 
  • Critics said that could hobble the state’s ability to increase taxes during an emergency in the future and warned that higher taxes could drive businesses and wealthy individuals out of state.  
  • In 2022, Uber Technologies, Inc UBER collaborated with financial technology startup Moove to boost the number of electric vehicles in London by an additional 10,000 over the next few years.
  • Price Action: LYFT shares are up by 4.32% at $11.10 premarket on the last check Thursday.
  • Photo via Wikimedia Commons
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