The journey from there to here

Well, folks, the general public is right. We have been gouged at the gas pumps.

And those responsible need to pay.

But, see, the thing is, the oil companies ain't where we should be pointing the finger. Indeed, if you have mutual funds, you probably got a chunk of the oil companies' profits back in your portfolio somewhere. While the oil companies DID make money, they used the laws of supply and demand to induce a conservative mindset among consumers at a time when supply was low. Nothing irregular or unethical about that.

No, the ones who have been gouging us at the pumps are the federal and state representatives. Even if you dismiss the taxes and tariffs that drive up the wholesale cost of gasoline in the first place, you need look no further than the gas taxes applied to your purchase. While it varies from state to state, most consumers are paying between 30 and 50 cents per gallon in taxes on their gas purchases.

Arguably, these gas taxes are put to good use. Nowhere in this article do I intend to imply that they do not. But the fact remains, if you're going to call for someone's head over the post-Katrina gas hikes, it should be the politicians, NOT the oil barons.


Comments
on Nov 10, 2005
And they get that regardless of the price of gas.  Gas is high, they get their 50 cents (fitty).  Gas is low, they get their money.  Oil companies make money based upon the price.  now that they cost is going down, they are making a lot less.  But Uncle Sam and Aunt Ginny still get theirs.
on Nov 10, 2005
Arguably, these gas taxes are put to good use. Nowhere in this article do I intend to imply that they do not. But the fact remains, if you're going to call for someone's head over the post-Katrina gas hikes, it should be the politicians, NOT the oil barons.


Did they increase the tax around the time of Katrina or something (sorry, don't live down there)? If they didn't, and the tax remained constant, the only variable would be the oil barons
on Nov 10, 2005
latour,

My point was (and IS) that the government gets FAR more out of a gallon of gas than the oil companies.

And since the oil companies are publicly traded, their shareholders receive most of the profits. And guess what? ANYONE can be a shareholder.
on Nov 10, 2005
Isn't it ironic that the ones who already get the biggest piece of the price per gallon pie (the government) is now considering imposing a "windfall" tax on the oil industry. So let me get this straight guys, if the oil industry loses money, you still get your cut, if they make money, you still get your cut... and if they make "too much" money... then you want an even bigger cut?

Why is the oil industy's profits "gouging", but the government making more than those profits "just a tax" that is somehow "helping the little guy"?

Were WE gouging the oil industry back in the 90s, when they were taking a loss in the price per barrel?
on Nov 10, 2005
Does this make any alleged gouging by the oil companies OK then?
on Nov 10, 2005

Did they increase the tax around the time of Katrina or something (sorry, don't live down there)? If they didn't, and the tax remained constant, the only variable would be the oil barons

Did they reduce it to relieve the burden?  No?  Yes they are.

on Nov 10, 2005

Does this make any alleged gouging by the oil companies OK then?

No, nor does an allegation make a crime.

on Nov 13, 2005

Does this make any alleged gouging by the oil companies OK then?

My opinion? What they did was PERFECTLY acceptable. We have the choice to buy or not to buy. As I said in a previous post, the post Katrina gas price hikes accomplished in about a month what the environmental movement couldn't do in THIRTY YEARS. It reduced our consumption. People are trading in SUV's for more fuel efficient building, and "green" building options are suddenly part of most people's long range plans, even in the Texas panhandle where they hadn't previously been given a second thought.

on Nov 13, 2005

As I said in a previous post, the post Katrina gas price hikes accomplished in about a month what the environmental movement couldn't do in THIRTY YEARS

Can I get an AMEN!  Hallelujah!  Praise the LOSAD!

Exactly.  I wrote about this about 10 months ago when the price was $55/barrell.

on Nov 13, 2005
latour,

My point was (and IS) that the government gets FAR more out of a gallon of gas than the oil companies.

And since the oil companies are publicly traded, their shareholders receive most of the profits. And guess what? ANYONE can be a shareholder.


In theory, anyone can be a shareholder. However, say I take out my life savings (not a lot) and try to invest in oil. First, I don't have a lot, so I'm probably not going to get more than a few hundred bucks out of the deal, assuming my investments pay off. And since I'm such a little guy, the banks don't care about me. The banks care about the high rollers, not the little guy. So they take a piece. And I'm assuming my investments do okay. Meanwhile, Joe Moneybags invests in the oil company, and hemakes enough to afford a new luxury car for his collection. Basically, we have a highly regressive system here. But, I agree it isn't much more regressive than gas tax. I may be pretty far left, but I just don't like excessive gas tax (shouldn't ignore the energy saving incentives of high gas prices, and I would rather have the profits distributed to the general population than the oil barons) or sales tax for that matter because they are both highly regressive forms of tax.
on Nov 14, 2005
Also, I have to assume that I have a few thousand dollars kicking around to invest, and that I make enough off my investments to account for the increase in my const of living due to more expensive gas.