Wednesday, November 16, 2011

Taxes and the Price of Gas

I took this picture of a gasoline pump in Mississippi.

Now, I will be the first to say that the price of oil is too high. Obviously if oil was alot cheaper then gas would be alot cheaper too since the price of oil accounts for 44% of the price.

But here's what gets me.. Taxes (at least in Mississippi and probably every where else account for 30% of the price of each gallon. Think about that for a moment. The government takes 30% of the price of every fill up. That's about $1 a gallon in Ohio right now. 

When gas prices go up the liberals in government and their partners in the press scream about big oil making  too money. They say,"Big oil is oppressing the little people that can't afford it." But big oil is taking all the risk, drilling all the wells, shipping all the product, paying all the employees. For all of that they get a 44% share of the end product.

Government hinders and taxes drilling, transporting, refining and selling the oil every step of the way. Government restricts drilling, regulates everything and reduces every ounce of profit they can. Government does nothing to drill for oil, refine oil or transport the oil or the finish product. Government does not build gas stations, install pumps or take any risk in the marketing, buying or selling the gasoline.

Yet they take 30% of the price of every gallon of gas that is sold? Tell me, who is making an ungodly profit? The oil companies, refineries, gas stations and clerks behind the counters are working hard for their money. It's the government that is getting an insanely huge profit and doing nothing for it. I say do away with that 30% and America can roll on and the economy can flourish.

To fill up the General it is always $60 and usually $75-80.  The BoggsMobile fill up is between $450-650. That means the government gets $20-24 every time I fill up the General and $135-195 every time I fill up the BoggsMobile. (Actually the taxes on diesel are usually even higher still.)

Can you imagine how much money Americans would have left to spend on things we really need if government would quit trying to punish business for earning a profit and stop confiscating all of our profit? 

End of rant... What do you think?



  1. The latest report I found reported that americans purchase over 140 billion gallons of gas p/yr. Let's use $3.00 p/gal (gas has been well above that mark most of the year).
    140,000,000,000 x $3.00 = $420 billion of gas sold in the US.
    30% of 420 billion = $126 billion for the government (in form of taxes) each year.

    So basically, for every gallon of gas we purchase, at least $1.00 goes the the government. You add it up. I don't drive like I use to, but I normally purchase, on average, 35 gallons of gas each week. That's 1820 g/gas p/yr. That's $1820 the government is receiving from just my purchases in gas alone. That's more then an entire year of auto insurance and home-owners insurance...with a couple hundred to spare.

    Interesting post (brother) Bro. davy.


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