can you explain that logic?
If US taxes on gas are in cents per gallon and not as a %age, how does Federal and State tax revenues increase when gas prices go up?
Surely the amount of tax revenues is based on the number of gallons sold and not on what the oil companies price the oil as.
Where am I misinterpreting this?
>>> According to NACS, in the United States, as of the beginning of 2011, the federal excise tax on gasoline was 18.4 cents per gallon. Of course, states can add their own taxes to that; the January 2011 average was 48.1 cents per gallon for gasoline taxes. (Diesel carries a federal tax of 24.4 cents a gallon, and an average fuel tax of 53.1 cents per gallon, once state taxes are added in.)>>>
With people paying more but getting less per gallon, the Governments are making a lot of money when prices go up. With the deficit has high as it is, I have to wonder why part of this money isn't being used by the Federal Government to reduce that debt? The tax originially was supposed to be used toward infrastructure but hasn't been for a long time which is why BO supposedly wanted to use 'stimulous' money for that.
If they have so much 'extra' tax money floating around, it sure would be nice if they would stop being hypocrtical with the 'tax the rich' spiel. It just seems to me that the extra money is just more for them to spend instead of putting it to good use.
BO complains all the time about the 'big oil' companies, but it's disingenuous when you think about the tax being collected on ALL fuels, including what's being shipped out of this country AND taxing their profits AND taxing their corporate capital gains for equipment AND taxing their employees AND taxing their utilitiy bills to run their plants, etc, etc.
The Federal government has their cake and eats it too, and for the life of me I can't understand why they vilify them so badly so publicly when it's so obvious how much they need them.
If the Feds want to do away with their subsidies (which are piddly small compared to what they used to be), I'm fine with that as long as they stop subsidizing EVERYTHING....including green energy.