Wednesday, February 29, 2012

Where does gasoline tax go?

Gasoline Taxes Vs. Exxon Profit, Per Gallon
You might have to read a little more here than wanted but I cannot contain it any longer. Ever wonder about how much a gallon of gas costs and why so high? This is your answer and it might be worth a bad case of the jaws to discover the real reason we in the United States pay so much and where the profits go.
When I first started hauling gas (last time I'll repeat that) regular, leaded gasoline was $0.39.9 a gallon delivered to farms and industry for less than 1500 gallons. It was just going over $0.33 at full service pumps. Look back at my description of the problem with government and consumers due to regulations. 
At the time I think taxes in Colorado were $0.07 state and $0.04 fed and all of those proceeds were targeted for highway construction including bridges, road and maintenance. Look on the map for the cost in your state now (2011). The tax in Colorado is more than a gallon of gas was in 1975 and all we could do was blame OPEC! Somewhere in time a government agency made a really poor choice and I'm not talking about getting the fat out of McDonald's french fries.
I delivered fuel for 7 years during the 70s and remember the biggest joke of all. Most of the cost for the finished, delivered product is gobbled up by government so we can keep oil producing countries on our good side. Has that changed?
The jobber I worked for made right between $0.01 and $0.02 per gallon of gas  I delivered. Each year, I moved a little over a million gallons. That's what paid my wages to work 10-16 hours a day.
Costs are so much higher today for a really simple reason. It costs ten times more today to drill, pump, transport to refineries, run a refinery, energy to run the refineries, ships, drilling rigs, transportation and basically the whole process of creating affordable energy.
Europe paid around $2.50 a gallon for mo-gas in the early 70s and we were griping about shortages here but were willing to pay a little more but not much. Thank the EPA for protecting us from fossil fuels. Now, what's the alternative? Today Barney Frank mentioned strategic reserves and wondered if we have them why not use them. Give me a break! How much oil is there? Really? I'm guessing we'll run out of oil about the time the ocean levels rise 1500 meters at the rate of .04 mm per year from the melting ice caps, according to Al Gore's friends..
For some reason unknown to me I can't find answers to the main problem. Where do the taxes from fossil fuels go? I was thinking about this a few months ago I came up with the biggest conspiracy of them all. Know why we pay such high taxes on everything? Because gasoline, for the best example, might become obsolete if I find the trick to perpetual motion. Meanwhile, why would government regulators want auto manufacturers to make cars that get better and better mileage when, a car or truck that uses more gasoline makes more revenue for the government no matter how high, or low, the tax is? And if the science still says we are re-creating the world in our own image and it's not good, then let them plug their car into an ear of corn and wait for the flood.
Increase the supply! What could happen? I'd like to drive my hot rod one more time with fuel that costs less some vain plastic surgeries I've seen lately.
There are only two things left to regulate: Ration Government not gas and eliminate stupidity!

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