energy prices

[2ndAmendment]

Putting the blame where it belongs.

"Like bellbottoms and disco, all kinds of bad ideas from the 1970s are coming back with the surge in energy prices. Arguably the worst is a 'windfall' profits tax on oil companies... A new report from the Tax Foundation finds that the biggest profiteers from oil aren't the companies that produce and deliver it to gas tanks, but are the federal and state governments that tax it. Between 1977 and 2004, total taxes on gasoline sales have been $1.34 trillion—thanks to average taxes at the pump of about 40 cents a gallon—or more than double the $640 billion of oil company profits—and that's not including the taxes the companies also paid on their profits." —The Wall Street Journal

 

[itsbob]

.40 is a fixed tax rate for a gallon of gas (I thought federal tax was .34). Whether gas is selling for .80 or $3.00 a gallon the tax is the same. So at 3.00 a gallon, that left $2.60 a gallon that went where? This would be something to ##### about at 80 cents a gallon (100% tax rate), but at $2.00 a gallon it's 25% tax rate, $3.00 is 15% not too bad! The higher the gas price, the less the tax rate is.

Now if the federal Gov't had based it on a percentage at .40 a gallon (.40 price plus .40 tax = .80 translates to 100% tax rate) gas TODAY currently would be $3.20 cents a gallon, and at the worst when gas was 3.00 (-.40 for tax = 2.60) it should have been $5.20. I prefer it the way it is. That and I like to drive on smooth roads, less potholes..

 

[Ken King]

As of this year the Federal gasoline tax was $.184 per gallon and state per gallon taxes are from a low of $.075 in Georgia (with a 4% sales tax) to a high of $.321 in Wisconsin.

 

[itsbob]

As of this year the Federal gasoline tax was $.184 per gallon and state per gallon taxes are from a low of $.075 in Georgia (with a 4% sales tax) to a high of $.321 in Wisconsin.

Maryland = 23.5 + Federal = 41.9 (23.5 is the total State tax, 41.9 is the total to include Federal taxes per gallon) This does NOT include the county taxes, or around DC the "Clean-Air" Tax..

 

[Bustem' Down]

Hey, it's a free market, if they charge 10 dollars a gallon and your willing to pay, oh well.

 

[Steve]

I think the point of the WSJ article is that some politicians are calling for a windfall tax against Big Oil when in reality the Government as a whole has taken in tax revenue on fuel twice what the oil companies made in profits over the last 15 years. A great deal of the post-tax PPG for fuels is reinvested in Big Oil infrastucture, R&D, new sources, etc. In short, for every 20 cents profit Big Oil makes, the government "makes" 40 cents.

 

[Ken King]

Maryland = 23.5 + Federal = 41.9 (23.5 is the total State tax, 41.9 is the total to include Federal taxes per gallon) This does NOT include the county taxes, or around DC the "Clean-Air" Tax..

What county tax?