Americans are screaming about the price of gasoline skyrocketing to almost $2.00
a gallon, and maybe more. There are some who would have you believe an
overly-simplistic view that it is just money-grubbing by the oil companies at
fault, when actually it all goes back to less popularly understood supply and
demand, and to taxation by the State and Federal governments.
Like it or not, we are using more and more oil every year, and we are becoming
more and more dependent upon foreign sources. Conservation? We Americans have
embraced conservation with as much enthusiasm as embracing a porcupine. SUV's
and personal trucks have represented a massive step backward in consumption, and
have even gained exemptions from Federal fuel performance regulations. At the
same time, we are not developing new domestic oil fields as the old ones run
dry. As a result of environmental controls and governmental requirements, there
has not been a new refinery built in the United States since Jimmy Carter was
president. It doesn't make any difference what the crude supply is if there
isn't the refining capacity. In truth, the latest earnings reports have shown
that the oil companies' profit margin (not gross profits) dropped to 6.8%, less
than most other industries. That's less than the California utility companies
were earning before in their wisdom the politicians and bureaucrats were so
quick
to deregulate. And bankrupt.
At the same time, per gallon taxes have been climbing. Think about it for a
moment. If gas is $1 a gallon, the State gets 8 cents in sales tax. If it is
$2
a gallon, the State gets 16 cents! On top of the State and Federal gasoline
taxes. And don't forget, we are charged State sales tax on those Federal and
State gasoline taxes included in that sales price. Since the higher the price,
the more we pay in taxes, the State government in particular is quite happy to
see prices go up. And remember who drives State cars and has the taxpayer pay
for their gas--all of the State Legislature, all of the elected officials, most
of the appointed bureaucrats, and thousands of State employees. Not to mention
City and County politicans and bureaucrats who have agency cars and
taxpayer-paid
gas.
But you know, even at $2.00 a gallon, our English cousins are green with
jealousy.
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/// (If they are dupes, this trailer may also catch them.)
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