On Sun, 20 May 2012 15:10:03 -0700, The Real Bev <
bashl...@gmail.com>
wrote:
>On 05/20/2012 01:43 PM, emoneyjoe wrote:
>
>> You have a sick idea about what socialism is,
>> gasoline prices are more dependent on where
>> it has to be transported to, have you looked at
>> the production, refining and consumption for
>> California? I haven't, but it would show if it
>> is taxes or availability that makes prices higher.
>
>According to
http://www.californiagasprices.com/tax_info.aspx
>
>We pay 35.3 cents/gallon and 15.2 (not clear if this is cents/gallon or
>percentage of cost). On top of that are sales taxes which run as high
>as 9.75& on top of (presumably) all the other taxes.
15.2 cents per gallon
>
>Perhaps this page takes that into account:
>
http://www.californiagasprices.com/USA_Tax_Map.aspx
>
>Remember, part of the real cost is the tax on gasoline/diesel that the
>truckers who haul the stuff pay.
>
>I remember reading somewhere that governments make more in taxes on gas
>and tobacco than the producers do. What's wrong with this picture?
Each gallon of gas sold earns the oil companies about .08 a gallon
profit.
http://jb-williams.com/4-25-06.htm
Who is "gouging" Whom at the Pumps?
Written by JB Williams
Evil Capitalists or Power Hungry Politicians? Washington Democrats rush
to exploit yet another hot button issue warming up for the mid-term
elections in November - rising oil & gas prices. It is an issue that
affects many Americans and Democrats hope to convince those Americans
that greedy Bush oil buddies are to blame. But as usual, the real facts
are quite different from the bogus campaign rhetoric...
Who is getting rich at the gas pumps?
For starters, many average Americans who hold stock in the oil
companies, either directly or indirectly through their 410k or mutual
fund. But the fact is, the gross profit margin for a gallon of gas in
America today, is what it has always been, on average, .08 cents per
gallon, (2.5% at $3.00 per gallon). Though retail gas prices fluctuate
with crude prices and supply vs. demand, the gross profit margin per
gallon remains roughly the same at all times. (No evidence of price
gouging here.)
However the federal government profits approximately .59 cents per
gallon through gasoline taxes, 7 ½ times or 750% that of the oil
producers themselves and 20% of the price at the pumps. Pay attention
here, Washington liberals are attacking oil companies for their 2.5%
gross profit margin, while Washington is profiting 20% per gallon.
Democrats answer? Tax some more?
If oil companies cut their profit margins by 50%, it would drop the
price of a gallon of gas by only .04 cents per gallon. If Washington law
makers cut their take by 50%, gasoline would cost .30 cents per gallon
less. If the federal government didn’t tax gasoline at all, the price
per gallon at the pumps would be $2.40 per gallon instead of $3.00 per
gallon and the oil companies would still be at a respectable 2.5% gross
profit margin. Who is gouging whom?
Have oil companies sought to inflate gas prices for profit?
If they did, they would have to do it by increasing their per gallon
profit margin. Holding their gross margin at 2.5% (.08 cents per gallon)
will result in higher overall profits as consumption rises, and both
consumption and prices rise during travel seasons. But it does not
demonstrate any effort to “gouge” consumers at the pumps.
On the other hand, .59 cents per gallon or 20% of retail gasoline prices
is certainly a demonstration of an effort to gouge consumers, but by way
of taxation from the federal government. The consumer is in fact being
gouged at the pumps and they have been for some years now, by our
federal and state governments. Who is gouging whom?
Why have gas prices gone up so much?
They haven’t. Over the last 20 years, gasoline per gallon has increased
roughly 60%, which equals an annual average increase of only 3%, which
is less than the average rate of inflation.
During the same 20 year period however, the salary of every member of
Congress has increased 250% or 12.5% per year. More than four times the
average rate of inflation. Who is gouging whom? Who looks greedy now?
Are Americans specifically being gouged by OPEC?
Quite the opposite. The most expensive places in the world to buy gas
are The Netherlands, Norway, Italy, Denmark and Belgium, all of which
are now above $7.00 per gallon at the pumps. Of course, all of which are
socialist governments with even heavier taxes per gallon than America.
The least expensive places in the world are Venezuela, Nigeria, Egypt,
Kuwait and Saudi Arabia, ranging between .15 cents and .95 cents per
gallon at their pumps. That’s because these are the largest oil
saturated countries in the world.
America is the single largest consumer of oil products, yet our retail
prices are very average in the world market, despite excessive federal
taxation. Who is gouging whom?
Where does all the money go?
Based upon a $3.00 gallon of gasoline, the average break-down is as
follows.
Gasoline Retailer $.01 cents per gallon
Oil Company $.08 cents per gallon
Refining $.29 cents per gallon
Marketing/Distribution $.32 cents per gallon
Taxes $.59 cents per gallon
Cost of crude $1.71 per gallon (delivered)
Who is gouging who?
Why is there a wide price variation between locations?
Gasoline is used by American retailers as a “loss leader” product. A
means of attracting consumers into their retail establishment with at
best a “break even” product, in an effort to sell other goods and
services at a profit. This keeps prices at the pump as low as possible
through open competition. The local stations with nothing but gas to
sell will be higher per gallon on average of course.
State to state, additional gasoline taxes and refining requirements as
well as distance from the closest refinery are the largest factors.
California is particularly high due to their excessive taxation and
environmental blend requirements as an example. These added refining
requirements also means that California experiences more shortages than
any other state. When they run low on supply, they can not import from a
neighboring state without violating their more stringent state
environmental codes. So who is gouging whom?
The Democrats answer to every problem, tax it some more?
Smelling blood in the political waters in an election year makes every
issue a campaign issue perfect for exploitation and current consumer
complaints over prices at the pumps is no exception.
Democrats call for an all out attack on those greedy rich oil companies,
which is like throwing red meat to their blue state socialist
constituents who see not only corporate greed, but capitalism itself as
the root of all evil in the world.
Their answer to high gasoline prices? Launch yet another “independent”
(partisan) investigation into high gasoline prices during an election
year when winning congressional seats in Washington might be the only
thing that can save their failed party from extinction.
But will attacking the group making the least on a gallon of gas, the
group responsible for ongoing exploration and production of gasoline,
solve the problem? Should some new “windfall-profit” tax aimed at
penalizing American companies for turning a profit be imposed?
In a word, NO! This attitude is the cause of the problem to the degree
you can prove any real problem exists at all. If we should penalize oil
companies for making .08 cents per gallon gross profit, how much should
we penalize our federal government for making .59 cents per gallon?
Corporations don’t pay taxes!
They do collect and remit taxes. But every penny of taxes placed on
corporate income is passed on to the consumer in the form of higher
retail prices, just like the .59 cents per gallon of federal taxes being
collected on behalf of the federal government at the pumps today.
So will electing Democrats who hope to tax gasoline (or any corporate
entity) even more help curb prices at the pump, the supermarket or
anywhere else? If so, I’d sure like to hear how?
How do you think gasoline got to be .59 cents per gallon higher than
need be? How do you think our government got to the point of consuming
nearly 60% of GDP in the first place?
You show me where the problem is and who is doing the endless gouging of
average Americans?
Is it the oil companies at .08 cents per gallon? Or is it the government
at .59 cents per gallon, for producing absolutely nothing?
Democrats seek to increase gasoline taxes beyond the current .59 cent
per gallon level. Can you explain how this will reduce prices at the
pump? No…nobody can.