High gas prices? Blame the real culprits.

[Borealis]

I know, most of you will dismiss this without even reading it simply because it's a) linked by a Conservative and b) written by Ann Coulter. Those of you who do read it would do well to consider the facts presented.

http://www.frontpagemagazine.com/Articles/ReadArticle.asp?ID=22232

Imposing punitive taxation on gasoline to force people to ride bicycles has been one of the left's main policy goals for years.

For decades Democrats have been trying to raise the price of gasoline so that the working class will stop their infernal car-driving and start riding on buses where they belong, while liberals ride in Gulfstream jets.

There follows a brief but detailed list of several prominent Democrats who have a history of trying to raise gas taxes.

It's the same up here in Canada; Liberal politicians raise gas taxes through the roof so they can rake in the cash as the price of oil increases. I'm trying to figure out how Alberta, with enough oil reserves to keep the entire country driving, has prices as high as the rest of the country. Then they complain about the oil companies making money. Yes, they're making a lot of profit, and yes, the Exxon chairman who just got a $400 million retirement package is a knob, but the left-wing politicians are the absolute last people on earth with the right to complain about being gouged at the pump.

 

[TheReasoner]

I know, most of you will dismiss this without even reading it simply because it's a) linked by a Conservative and b) written by Ann Coulter. Those of you who do read it would do well to consider the facts presented.

http://www.frontpagemagazine.com/Articles/ReadArticle.asp?ID=22232

There follows a brief but detailed list of several prominent Democrats who have a history of trying to raise gas taxes.

It's the same up here in Canada; Liberal politicians raise gas taxes through the roof so they can rake in the cash as the price of oil increases. I'm trying to figure out how Alberta, with enough oil reserves to keep the entire country driving, has prices as high as the rest of the country. Then they complain about the oil companies making money. Yes, they're making a lot of profit, and yes, the Exxon chairman who just got a $400 million retirement package is a knob, but the left-wing politicians are the absolute last people on earth with the right to complain about being gouged at the pump.

Well, the world benefits from high gas prices. Drive less cars, use more collective or alternative means of transportation.

I say raise them. I say raise them high.

 

[Maxwell511]

Does anyone have information on when the last tax increase on gas occured?

 

[nvxplorer]

Huh? The industry itself is claiming supply and demand for the spike in gas prices.

As usual, Coulter ignores reality and attempts to infuriate her audience by demonizing liberals.

Next she’ll be claiming that crude oil futures brokers are all working for Ted Kennedy.

 

[Peacebestill]

It is the liberal tree huggers who have imposed the environmental standards in place (ie, no new refineries, excessive taxation, regulations).

It is simply supply and demand and a bottleneck.

That said, it is also price gouging by oil companies who are just now processing the oil they bought at $50 a bbl but they are pricing it at the current $72 a bbl.

 

[Qidron]

I love this one:

Leftist Liberals are essentially perpetual teenagers...They treat the gov't the same way spoiled 16 y/o's all full of self-importance and delusions of immortality treat their folks.

OH SO TRUE!!!!!!!!

...but how's about the oil companies...why ISN't it their
bad?

 

[nvxplorer]

It is the liberal tree huggers who have imposed the environmental standards in place (ie, no new refineries, excessive taxation, regulations).

Excessive compared to what? The US gasoline tax is less than other industrialized countries.

It is simply supply and demand and a bottleneck.

Perhaps. The increase in demand is coming from China, however.

That said, it is also price gouging by oil companies who are just now processing the oil they bought at $50 a bbl but they are pricing it at the current $72 a bbl.

This is a consequence of the commodities market. The price of crude is based on speculation.

 

[nvxplorer]

I love this one:

Leftist Liberals are essentially perpetual teenagers...They treat the gov't the same way spoiled 16 y/o's all full of self-importance and delusions of immortality treat their folks.

OH SO TRUE!!!!!!!!

...but how's about the oil companies...why ISN't it their
bad?

Ironic.

With Coulter, I feel as if I’m reading the rhetoric of a bullied high school student.

 

[MethodMan]

Huh? The industry itself is claiming supply and demand for the spike in gas prices.

As usual, Coulter ignores reality and attempts to infuriate her audience by demonizing liberals.

Next she’ll be claiming that crude oil futures brokers are all working for Ted Kennedy.

So what are the real reasons for the high prices?

You can't deny the Democrats have been trying to establish higher gas taxes. Republicans aren't doing much to reduce them.

Between Fed & state, the gas tax in PA is .495 per gallon or around 4-5X oil Company profit on a gallon. Seems a little hypocritcal of any Gov't official to opine about Oil Co. profit when they profit most from every mile you drive.


My real issue is with the folks setting the oil prices out of irrational feal of the future. Toss that in with refining capacity, fuel formualtions (to many to count) and lack of exploiting our own oil reserves leads me to believe that the Gov't doesn't have the capability to solve this issue.

We do. Stop driving your car. Not merely reducing how much you drive but stop completely.

No one wants that option. We like our cars. We will pay the higher prices and continue to complain as we drive our $3/gal cars to Starbucks for the $4 cup of coffee every morning.

 

[TheReasoner]

Leftist Liberals are essentially perpetual teenagers...They treat the gov't the same way spoiled 16 y/o's all full of self-importance and delusions of immortality treat their folks.

So.... To debate politics, you need to resort to labels and belittling like this?
Hm....

 

[Maynard Keenan]

Gas taxes account for about 10% of the price. Gas taxes have no been raised as the price went up. Ergo, gas taxes not the culprit and liberals not to blame. Nice try though.

 

[Peacebestill]

Source: American Petroleum Institute, Tax Foundation.

"Today, the combined burden of federal, state and local gas taxes costs American drivers an average of 45.9 cents on every gallon purchased. In some states the combined taxes exceed 60 cents for every gallon purchased. According to data on gasoline use from the U.S. Department of Transportation, that amounts to an annual gas tax burden of roughly $271 for every man, woman and child in the United States.
In these times of concern over high gas prices, American consumers should remember that gasoline taxes have a significant impact on the amount they spend at the pump."

 

[MethodMan]

Gas taxes account for about 10% of the price. Gas taxes have no been raised as the price went up. Ergo, gas taxes not the culprit and liberals not to blame. Nice try though.

Point was that oil company profit isn't either.

 

[Arkanin]

If they are doing something to discourage petrolium depletion, good for them; do you realize how hyperdependent our economy is on petrolium? A 10% shortage of oil would cause its price to increase by at least a factor of 25 due to inelasticity of demand. As we deplete cheaper sources and slowly move to more expensive sources, things are going to get ugly.

I'll be honest: my concerns with oil have nothing to do with the environment and everything to do with the economy. In light of that, I'd say doing anything to make a dent in oil consumption isn't necessarily a bad policy.

 

[ballfan]

http://www.taxfoundation.org/publications/show/1139.html

​

 

[kermit]

Point was that oil company profit isn't either.

KenH has already debunked this. Oil companies make 2-3 (accounting for inflation) times what they used to per barrel.

Anyone with any business background knows that a lack of profit tells you nothing really. It's not until you look at the revenue and expences do you can get a understanding of what's going on.

I work for a smallish consulting company. If were to raise our rates by 50% that might not mean a 50% increase in profit (supposing no loss of business). The company may reinvest that money. Or perhaps the CEO decides most of that money is going into his pockets. Either way it's not making it to the bottom line.

 

[Alabaster]

It would seem that the divergence is found at the state, not federal level.

http://www.gaspricewatch.com/usgastaxes.asp

Additionally the federal level seems to have been constant for over a decade.

http://www.freerepublic.com/focus/f-news/1619245/posts

Where are the evil liberals?

 

[MethodMan]

KenH has already debunked this. Oil companies make 2-3 (accounting for inflation) times what they used to per barrel.

Must have missed that or discounted it for the meaningless statement that it is.

Anyone with any business background knows that a lack of profit tells you nothing really. It's not until you look at the revenue and expences do you can get a understanding of what's going on.

And I am sure you can easily explain it to us.

I work for a smallish consulting company. If were to raise our rates by 50% that might not mean a 50% increase in profit (supposing no loss of business). The company may reinvest that money. Or perhaps the CEO decides most of that money is going into his pockets. Either way it's not making it to the bottom line.

So how much of the price of gas is actual cost (not including the oil used)?

 

[MethodMan]

Where are the evil liberals?

Federal? They lost control of congress 11 years ago

 

[kermit]

And I am sure you can easily explain it to us.

Sure. Let's say I increase my revenue by 100%. The layman would expect my profit to double, but he would be wrong.

However, with that added revenue I may have added additional workforce, bought equipment, etc. These things would be generally considered good things.

However, it's also possible that the extra money is squandered on frivilous items like excessive bonuses for executives. This would generally be considered bad.

In any case how a company spends it's revenue it will it will lower profit.

When we hear of $450 million retirement bonuses one gets an idea of where some of the money is going.

Simply looking at profit to make the claim that a company isn't making more money is a simplictic view and demonstrates little understanding of how businesses operate.