America's top gas gouger?

[Soldier4Christ]

America's top gas gouger?
It's the government,
States, feds taking chunk
bigger than oil companies

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.

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.

[Soldier4Christ]

Illinois' gas tax is that it is based on a percentage of sales, rather than by gallon. It is 19 cents to the dollar. As the price of gas goes up, so does Illinois' take. With gas at $3.00 a gallon that makes it 57 cents per gal. One of the highest in the nation. Gov Blagojevich just submitted a bill that would increase that to 29 cents. The additional 10 cents is to cover his health plan programs which are also garbage as they fall far short of the existing ones.

In addition to the state sales tax on gas their are many local areas (county and/or city) that also adds a sales tax to it.

[Soldier4Christ]

Senate Advances $29B in Taxes for Oil Companies

A proposal to hit oil companies with $29 billion in new taxes advanced in the Senate on Tuesday, targeting the money to energy conservation, wind turbines, electric hybrid cars and clean coal technology.

The massive tax package, double what Democrats had talked about as recently as last week, is "designed to promote clean and sustainable energy," said Sen. Max Baucus, D-Mont., chairman of the Finance Committee that approved the measure by a 15-5 vote.

It will be added to energy legislation being considered by the full Senate.

Senators acknowledged that oil companies would to howl over the new taxes.

But Sen. Chuck Grassley, R-Iowa, said, "We have entered a new era in energy markets ...(that) requires a dramatic shift away from tax incentives for oil and gas production" and toward support for other energy sources and efficiency.

Senators, meanwhile, debated a proposal aimed to boost the use of liquefied coal as a substitute for diesel and jet fuel.

Sen. Jim Bunning, R-Ky., whose amendment would require the use of 6 billion gallons of liquefied coal a year by 2022, argued that coal was an abundant American resource that should be used to replace imported oil. A related amendment offered by Sen. Jon Tester, D-Mont., would commit the government to $10 billion in loans for construction of plants that process coal into liquid fuel.

The tax package that emerged from the Finance Committee reflected the dramatic tilt of congressional sentiment toward renewable fuels — and away from support of oil companies — since Democrats took over control of Congress. In part, the shift stems from growing concerns about the impact of fossil fuels on global warming and motorists' anger over soaring gasoline prices.

The bill would funnel about $11 billion over 10 years into the development of renewable fuels such as ethanol, biodiesel and power from wind turbines in a combination of extensions of existing tax breaks and new tax benefits. An additional $18 billion in tax breaks — from tax credits to clean and renewable energy bonds — also were approved.

To pay for the reductions in revenue, the legislation targeted the large oil companies, either ending a number of tax benefits, some provided as recently as three years ago, and imposing new taxes.

The measure would extend and increase taxes paid under an oil spill liability law and eliminate existing tax credits involving foreign oil production. In all, the tax changes were expected to cost the industry more than $15 billion over a decade.

Another measure, pushed by Sen. Jeff Bingaman, D-N.M., was aimed at collected $10.7 billion in royalties the government has been unable to collect because of flawed oil leasing contracts issued by the Interior Department in 1998-99. The government would collect an excise tax on any oil taken from the Gulf of Mexico, subject to royalties not being paid.

Bunning called the excise tax a "strong arm tactic," the sort of thing Venezuela President Hugo Chavez might try. But his attempt to strip away the offshore drilling tax was rejected.

Sen. Jon Kyl, R-Ariz., said the taxes on the large oil companies — most of the provisions exempt smaller producers — "will almost certainly lead to gas price increases" as oil companies pass on the added cost. "You can't raise taxes ... by $29 billion and not expect gas prices to increase," he said.

Baucus and Grassley said they do not expect higher prices as a result of the tax increases.

[Soldier4Christ]

And of course these companies will pass the cost of this on down to the consumers.