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Quote by: Technosoul A good deal of the total price paid at the pump is for taxes imposed by our government, which makes the oil company a tax collection organization (Like the IRS) which also costs them money to keep track of. Removing the laws that force gas companies to cease being tax collectors would automactically bring down the cost per gal at the pump by a rather large percentage.
However, if we removed the tax then that would not prevent the oil people from raising their price down the line, so soon they would have the rate back up to where it now stands and all the money would end up in their pockets instead of being used for road repairs via taxes. They will raise the price until we stop buying the gasoline, then they will edge it back down to reclaim their market. Taxes or no taxes being figured into the cost.
(that was my opinion based on rather predictable patterns of current behavior).
Gas is just like prescription drugs, cigarettes, and other things we believe we cannot live without. We will pay any price if we believe or know we need the stuff. And we will cut back on other things we think we can do without, buying cheaper food to eat, etc.
The low income a the bottom half of our so-called middle class is hit from all sides of late, a rise in medicene, higher prices for rent or for buying a house, higher prices for gas, and more for other things - like CD music and even some food products. Gas seems to the the "last straw" on the camels back, and so it is getting the most attention. Trying to make a paycheck last til the next payday, nearly impossible for a vast number of people. It reminds me of the time when I was young and stupid and went down to TJ with the guys - we walked into a bar and 20 girls rushed us and had their hands in every pocket of our pants and jackets. Ever get rushed by 20 pickpockets at once, lawdy have mercy. That is what it is like nowadays when it comes to the cost of living.
The tow truck companies have reported that they had to start towing people off the freeways at three cars per hour, all of then from running out of gas. People are driving around on fumes and a prayer, hoping to make to that one gas station where gas is a few cents cheaper then at the other stations.
I guess we cannot call it a war between the haves and have nots, but it sure seems that way, and the have nots are having a lot less. How long the public will put up with it is anyone's guess, but tempers could crack wide open at any time, especially when it gets really hot in the summer, so beware. |
Tech: POI Oil companies are not the tax collectors for the government. It is the small business man at the retail level.
As for the price of gas rising back up after tax elimination, it may or may not be true depending upon the other factors that affect the rise of gasoline prices. Global stabiilty, Mideast turmoil, growing demand by China, oil speculation in commodity market etc, etc. The price of gasoline could easily go down after tax elimination if those in the commodities market who are long sold their contracts and took their profits. The price of gasoline would fall because the supply would increase.
Keep in mind also that some states charge a sales tax over and above the fuel tax charged at the pump as well.
In any event, the US could eliminate charging tax at the point of use. There are any number of ways to recover the tax. It could be charged as a ton mile tax based upon weight of the vehicle / miles travelled as in commercial trucking. It could also be based upon consumption at the time of the vehicle registration and renewal based upon mileage driven and distributed through the state government to the national government. Tolls could be established to route the use tax directly to the roads used thereby eliminating the greedy politican's hands in the till to redirect the tax to favorite pork projects. This all would eliminate the retailer acting as the tax collector as well.
This is not class warfare and to attempt to couch it as such is a mistake. Who are the "haves"? Who are the "have nots"? What say you to people who can least afford it smoke cigarettes at $5 per pack when they can buy their children a better pair of shoes with that $35 per week habit? That $140 per month could be a car payment that could buy them a car that gets better fuel mileage to carry them to a job that pays more money.
And on and on
Your class warfare allusion is a slippery slope and one that has nothing to do with gasoline prices.