Government makes 15% off gas!

[mikesilvia]

The Wall Street Journal reported some staggering numbers to me.

The U.S. Government makes $0.15 off of every $1 of gas and the oil companies make $0.04. This means at $4 the government takes in $0.60 and the gas company makes $0.12. So, the government makes more than 4 times the money the gas companies are making and congress has is calling the oil execs in front of them for investigations?

The U.S. government makes MORE money everytime oil prices rise. I'm starting to realize why Democrats refuse to let companies drill in Alaska or off the US coasts. They keep the supply low and the prices of gas goes higher, thus increasing their profits. Now I understand the code word for "caribou" it means "government profits". So, when they say protect the "caribou," we know better. It is a way for Democrats to raise taxes on EVERYONE without raising taxes.

[pr0phet]

Proof of this please.. It makes great sense but is a mighty high claim!!!This proves especially true considering the fact that the dems. had a plan to lift most if not all national deficit in like 5 years.

[11chaos]

Ah I love Politicians. It doesn't matter which party they are.

[11chaos]

For now, as this is written in June 2005, it remains 18.4 cents a gallon.

for the full detail go here;
http://www.fhwa.dot.gov/infrastructure/gastax.cfm

[mikesilvia]

Maybe I got it mixed up. Should have said $0.15 per gallon, not 15%. Let me search for the Wall Street Journal Article. I've tried to find it online, but you have to be a paid subscriber to view full articles.

Here is what I found on Yahoo Answers:

If you do some research, you will see, for instance, that Exxon makes 7 to 8 cents profit per gallon of gas sold.

In contrast, the Federal Government tax on a gallon of gas is 18.4 cents, and then you add the state tax of anywhere from 15 to 30 cents per gallon...well, you get my point. The oil companies are NOT making a killing on gas prices like the media would lead you to believe, but the government is!

With Links:
http://www.gaspricewatch.com/usgastaxes.asp
http://www.taxfoundation.org/news/show/1168.html

As you can see the government is making 33 - 48 cents per gallon while the oil companies are making 7-8 cents per gallon. So, while Congress is grilling "evil" oil executives, they are far more to blame for high gas prices making 4-6 times the money if you include state taxes.

[herdyrules]

Government are crooks............

[OnePimpTiger]

And this is surprising? Politicians' best tactic is to point fingers in the other direction so people don't look at the things they do. Just another way to get more of our money.

The tax rate is far too high as it is, but I would like to see the actual tax burden on an average citizen including taxes paid in gas, groceries, property tax, other excise taxes, etc...or maybe I wouldn't, I don't like to cry. And we want to put people in office who want to raise taxes?!?!

This proves especially true considering the fact that the dems. had a plan to lift most if not all national deficit in like 5 years.

If you believe that, I've got some ocean-front property here in Western NC for ya! The problem with Democrats is they think they know better and can spend your money better than you can...no matter how much they get, they'll always find a social program to spend it on. The problem with Republicans is they want to cut taxes, but they love spending almost as much as the Democrats do and very basic economics tell you that won't work...you can't cut your income while increasing your expenses at the same time. But what stays the same whether it's Democrats or Republicans is that all politicians like to spend money...and the only way to reduce the national deficit while continuing to spend money is to raise taxes that much higher. So either the deficit isn't going any where or we're going to be giving every extra dime we make to pay it off in 5 years...or even 25 years, and even then I say it's impossible.

[mikesilvia]

What makes it even more sickening is that Obama wants to start a "windfall" tax on the oil companies profits. So, the government is already making 4-6 times more money from a gallon of gas and now Obama wants more. This "Obama tax" will be passed on to the consumer with even higher gas prices. This is why I call an Obama presidency Jimmy Carter Part II.

[haybierman]

This is why I call an Obama presidency Jimmy Carter Part II.

Maybe we can rest easy that a Carter II means a mere four years until 8 years of Reagan II.

C'mon a guy can hope can't he?

[rodent14]

The U.S. Government makes $0.15 off of every $1 of gas and the oil companies make $0.04. This means at $4 the government takes in $0.60 and the gas company makes $0.12.

not to sound too annoying here, but you may want to check the math on this one. 4x.15 does equal $.60 but I'm pretty sure 4x.04 doesn't equal 12 cents. I'm pretty sure that last one should be 16 cents lol