There is an economic factor called "externalities" that needs some
consideration when people in the United States complain about high fuel taxes
(and high fuel prices). These unaddressed externalities include the cost of
roads, environmental destruction, the suffering of maimed accident victims,
military costs to secure our oil supply, etc. etc.
Here's a short article on this concept:
REAL COST OF U.S. GASOLINE IS $15.14 PER GALLON, REPORT SAYS
> By Tom Doggett
> WASHINGTON - So you think you're getting a good deal on a tank of
> gasoline these days? Not so, if all the oil industry tax subsidies
> received from the federal and state governments and other costs that
> went into producing that gallon of gasoline were included in the pump
> price.
> Such external costs push the price of gasoline as high as $15.14 a
> gallon, according to a new report released Tuesday by the
> International Centre for Technology Assessment.
> "In reality, the external costs of using our cars are much more higher
> than we may realise," the Washington-based research group said in its
> report.
> The report examined more than 40 separate cost factors the group said
> it associated with gasoline production but aren't reflected by the
> price of gasoline at the pump.
> These external costs total up to $1.69 trillion per year, according to
> the report.
> The group points out that the federal government provides the oil
> industry with tax breaks to help U.S. companies compete with
> international producers, so gasoline remains cheap for American
> consumers.
> The Department of Energy is forecasting that the national price for
> regular unleaded gasoline will average $1.02 during the current
> quarter, the lowest price on record for any three-month period when
> adjusted for inflation.
> Tax subsidies don't end at the federal level, as the group said most
> state income taxes are based on oil firms' lower federal tax bills,
> which result in companies paying $123 million to $323 million less in
> state taxes.
> In addition to tax breaks, the federal government provides up to
> $114.6 billion in subsidies annually that support the extraction,
> production and use of petroleum, such as research and development and
export financing.
> The federal government also spends up to $1.6 billion yearly on
> regulatory oversight, pollution cleanup and liability costs connected
> to the oil industry, the group said.
> In addition, U.S. Defence Department spending allocated to safeguard
> the world's petroleum resources totals $55 billion to $96 billion a
> year, according to the group.
>>> "Lew Palmer" <lpalmer@roundaboutmanor.com> 09/30/03 03:27PM >>>
... try 2.07 here, with refineries right across the bay. Can you say
"profiteering"?
... and how much of that is California and federal taxes?
Lew Palmer
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