Top gas gouger? The government!
- From: jose <josefsoplar@xxxxxxxxx>
- Date: Wed, 20 Jun 2007 16:09:22 -0000
Top gas gouger? The government!
States, feds taking chunk bigger than oil companies
By Alyssa Farah
© 2007 WorldNetDaily.com
WASHINGTON - With summer travel in full gear and motorists more
conscious of the price of gasoline than ever before, few Americans
realize that up to 60 cents of the cost per gallon is the result of
local, state and federal taxes.
In fact, despite allegations of price-gouging, some retailers say they
are actually losing money on every gallon they pump.
State, local and federal taxes make up about 20 percent of the cost
paid at the pump, according to Conoco Phillips, an international,
integrated energy company.
(Story continues below)
So, while many tend to assume major gas companies are hugely profiting
when gas prices peak, this may not be the case. According to the U.S.
Energy Information Administration, when the average price of regular
unleaded gas peaked at $3 per gallon in 2006, most major companies
were profiting only about 10 cents per gallon on refining and
marketing options, while the federal tax alone is as much as 18.4
cents per gallon.
As of March, the national average gasoline tax is 45.8 cents. New York
has the highest gas tax at 60.8 cents at the pump, with Hawaii just
behind costing 60.2 cents per gallon, according to the American
Petroleum Institute.
Gas taxes include federal, averaging 18.4 cents per gallon; state,
averaging 18.2 cents per gallon; and additional taxes costing an
average of 9.15 cents per gallon. The additional taxes include
applicable sales taxes, gross receipts taxes, oil inspection fees,
underground storage tank fees and other environmental fees.
New York assemblymen presented a proposal to the state legislature
advocating a gas tax cut. However, concerns have been raised that a
hole will open in the state's budget that cannot be filled. Republican
advocates argue that increased tourism caused by the ability to travel
more cheaply because of lower gas prices will fill the $200-$300
million dollar gap.
Texas Gov. Rick Perry supported a proposal to lower the gas tax by 20
cents over the summer. The proposal passed in the state House of
Representatives, but was pushed aside in the Texas Senate.
Another effort to decrease the amount paid is the so-called "tax
holiday" at the pump. Several states have considered proposals for
"tax holidays" that would be a period of time with no gas tax. A bill
was presented to Congress last week that would suspend gas tax during
price spikes above $3 per gallon. Rolling back tax breaks for major
oil companies would make up for any lost revenue.
In Connecticut as well, a gas tax relief proposal was offered by the
Republican minority but quickly swept under the rug by the Democrat
majority, despite its support from Gov. M. Jodi Rell.
Taxes on gasoline vary from state to state. In Alaska, the gas tax is
only 26.4 cents, the lowest gas tax in the nation. New York's gas tax
is more than twice as much. The gas tax isn't the only element that
increases prices at the pump. But it remains one of the most
significant factors in high-priced gasoline.
California, for example, has extensive environmental restrictions that
require the state to use an expensive blend of gasoline. At the same
time, the cost in some Midwestern states is far higher because
delivery costs are higher.
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