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California voters on Tuesday rejected a tax increase that would have gone to fund more electric vehicles for the state’s ambitious climate goals.

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The measure, Prop 30, would have levied a 1.75% tax on Californians making more than $2 million a year—less than 43,000 taxpayers There are almost 40 million people in the state. Even without that, California’s highest paid workers pay the highest income tax in the country at over 13%.

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Democratic Gov. Gavin Newsom campaigned against the measure, branding it as a taxpayer-funded giveaway to ridesharing companies. Under California law, car rental companies must ensure that almost all rides booked through their services are zero-emission by 2030. Car rental company Lyft provided most of the funding for the yes campaign.

“California voters have strongly rejected this ill-conceived and unnecessary tax increase,” the Vote No Proposition 30 campaign says. statement. “The fact is that Proposition 30 was a solution to a problem that the state is already solving.”

Most of the money would go to programs that help people buy electric cars or install more chargers. A fifth of the money would go towards increasing resources to fight wildfires, another major source of emissions in the state.

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The Yes Campaign stated that Proposition 30 would create “a healthier and safer future for our state and our families—a future with less air pollution, fewer catastrophic wildfires, and the ability to save our state from some of the most devastating effects of climate change.” .”

Last year, Newsom instructed California aviation regulators to impose a ban on the sale of new gasoline-powered vehicles starting in 2035. Car companies will have to sell cars that run on hydrogen, batteries or gas-powered hybrids. People were still able to drive their gasoline-powered cars or buy used ones.

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Newsom noted that his administration has already committed $10 billion over the next six years to the development of electric vehicles.

Supporters of the measure, including most major environmental groups, said the state needs a dedicated, reliable source of funding to build infrastructure that can handle more plug-in cars and help Californians of all income levels buy them.

About 18% of new car sales this year were all-electric or hybrid vehicles, according to Newsom’s office. By 2026, this figure will have to double in order to meet new government requirements for car sales.

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By 2045, the state wants to become “carbon neutral,” which will require significant reductions in emissions from vehicles and other sources, as well as the creation of technologies that can capture carbon as it is emitted, or extract it from the air and then store it. it’s underground.