07.01.2008 0

Gas Pains Government’s Fault

  • On: 07/16/2008 15:21:56
  • In: Energy Crisis, Global Warming Fraud, and the Environment
  • In recent years it has become en vogue to blame oil companies for the escalating prices of gasoline.

    In truth, there is only about 10 cents per gallon made in “obscene profits” (as our salons would say) when gasoline is sold. But many Americans may not realize that they pay on average 47 cents per gallon in gasoline taxes levied by the State and Federal governments.

    So, now we know why Dino the Dinosaur became extinct!

    According to the EIA, the average price per gallon of gasoline was $3.28 on March 17th, up over 70 cents from the previous year – an increase largely due to increases in the cost of production, greater demand, and the drop in the value of the dollar.

    With the Federal gasoline tax standing at 18.4 cents per gallon and States on average charging 28.6 cents per gallon, this means the main profit-maker on gasoline is Big Government. You can view how gasoline taxes break down by each State by clicking on API.org’s latest report here.

    According to the report, since July 2007, North Carolina and Florida actually increased their taxes. Over the past year, only New York and Nebraska cut theirs – albeit, by miniscule amounts.

    Around the country, there are a handful of proposals to cut and (believe it or not) raise gasoline taxes. For example, a Michigan Congressman wants to hike the Federal gasoline tax by a staggering 50 cents. His idea seems to be to punish the people and reward the environment (which no one will be able to afford to drive out to see) in order to cut consumption. In Illinois, one State legislator wants to cut their tax, which currently stands at 39.5 cents per gallon, during the summer when motorists are on the highways the most.

    For all of the talk by lawmakers of price-gouging by Big Oil, it’s actually Big Government that is making five times more per gallon than those they like to vilify. So much for dining on Dino.

    ALG Perspective:
    The oil companies cannot control the escalating costs of producing gasoline nor increasing demand, and they certainly cannot add value to the dollar. Nor can they increase drilling or build new refineries domestically because of excessive government regulations. Instead of leveling blame at Big Oil, we ought to blame Big Government for the energy crisis. Legislators who sincerely want to help out American consumers at the pump ought to reduce or eliminate gasoline taxes.

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