California Front-Runner Proposes New Road Taxes for All Drivers
Sacramento, Thursday, 29 October 2026.
Leading the gubernatorial race, Xavier Becerra proposes a statewide per-mile driving fee—hitting electric vehicles as well as gas cars—while simultaneously seeking higher income taxes on California’s wealthiest residents.
Becerra’s Mileage Tax: A Break from Gas Tax Tradition
Democratic gubernatorial candidate Xavier Becerra is advancing a per-mile road usage charge as a cornerstone of his infrastructure funding plan, signaling a potential departure from California’s long-standing reliance on gas taxes. Unlike the state’s current 51.1 cents per gallon gasoline tax—which primarily funds road maintenance—the proposed mileage tax would apply uniformly to all drivers, including electric vehicle (EV) owners who currently contribute nothing to road upkeep through fuel levies [GPT]. Becerra’s campaign has framed the fee as a necessary evolution to address the state’s crumbling transportation network, with a state-commissioned report on implementation due by the end of 2026 [1]. The proposal comes as California grapples with an estimated $130 billion backlog in road repairs, exacerbated by deferred maintenance and the state’s default on its $22 billion federal unemployment insurance debt, which has triggered escalating payroll taxes for businesses [alert! ‘Becerra’s plan does not specify the per-mile rate or whether it would replace existing gas taxes’].
Wealth Tax Ambitions: Targeting Billionaires to Close Fiscal Gaps
In a parallel fiscal maneuver, Becerra is advocating for a new income tax bracket targeting California’s wealthiest residents, aiming to recalibrate tax equity in a state where the top 1% of earners contribute 45% of all personal income taxes [2]. His proposal targets billionaires paying lower effective tax rates than middle-class professions like firefighters and teachers, citing data from the California Franchise Tax Board that shows the state’s top 0.1% of earners paid an average effective tax rate of 9.3% in 2023, compared to 14.7% for the median taxpayer [GPT][3]. While Becerra has not detailed the specific tax rate or threshold, his campaign has emphasized closing loopholes exploited by high-net-worth individuals, including carried interest deductions and offshore tax shelters [1]. The move aligns with his broader critique of ‘corporate welfare,’ where he argues corporations receiving tax breaks should justify their necessity to the public [1].
Corporate Accountability and High-Speed Rail Overhaul
Becerra’s fiscal agenda extends to corporate accountability, with a proposal to penalize companies whose full-time employees rely on Medi-Cal—a state Medicaid program—for healthcare subsidies. Under a 2023 state law, the next governor must submit a written proposal by April 2027 to address this issue, though the mechanism (e.g., payroll taxes or healthcare fees) remains undefined [alert! ‘Becerra has not specified the fee structure or whether it would apply retroactively’][1]. Additionally, Becerra has vowed to replace the CEO of California’s embattled High-Speed Rail Authority if elected, citing financial transparency failures and the recent arrest of CEO Ian Choudri, who faces allegations of misconduct unrelated to the project [1]. The rail authority, which has faced repeated cost overruns and delays, remains a flashpoint in the gubernatorial race, with Becerra’s opponent Steve Hilton advocating for its outright cancellation [5].
Political and Economic Implications of Becerra’s Proposals
Becerra’s tax and infrastructure plans arrive amid a historically sour mood among California voters, with 82% of residents expressing pessimism about the state’s direction and 80% predicting worsening economic conditions over the next 12 months, according to a Public Policy Institute of California (PPIC) survey conducted October 16–22, 2026 [4][6]. While Becerra holds a commanding 24-point lead over Republican Steve Hilton (61% to 37%) in the gubernatorial race, his proposals face scrutiny from both sides of the aisle [4][6]. Opponents, including Assemblyman Carl DeMaio, argue that mileage taxes disproportionately burden low-income drivers and fail to address government spending inefficiencies [2]. Meanwhile, Proposition 40—a competing billionaire wealth tax initiative—has seen support erode to 46% among likely voters, down from 52% in September 2026, indicating waning enthusiasm for progressive tax measures [4][6]. Becerra’s opposition to Proposition 40, which targets 200 California residents with $1 billion in assets, underscores his pragmatic approach to fiscal policy, favoring incremental reforms over structural upheaval [7].