High Gas Prices

[godoftrading]

Do you know that the US government gets more of the money from gasoline sales than any of the oil companies? Let me walk you through this:

Exxon's profit margin is 11.23%, so at $3.50/gallon Exxon gets 39 cents, this is after the US government taxed their profits; $29 billion from Exxon alone, 41% of their profits. The US government earned 27 cents per gallon off Exxon

Then there is the federal tax of 18.4 cents per gallon. State taxes average 28.6 cents per gallon, so in direct taxes on your gas, 47 cents goes to the government.

Add in the taxes on oil companies and 74 cents goes to the US government versus 39 cents to Exxon, almost double. So who should the "windfall" profit tax be on? The entity that produces and delivers the gas or the one that does nothing at all? Who is really "gouging" you at the pump? This is after the US and State governments have taxed your income, made you pay for a drivers licenses and tabs for your car, among many other things.


****Please note the numbers on Exxon assume that all they do is sell gasoline. I still believe the argument is valid.

[mathjak107]

without knowing what that margin represents its rather meaningless. is it 11% after expenses and salarys and exploration? 11% before expenses is very very low in fact my own business wouldnt survive on 11% before expenses

[jazz4cash]

Doesn't the 18.4 cent Federal tax go to the highway trust fund? In that case we are simply paying for the roads we use, which is probably a bargain.

[tjon72]

Yeah, Ireally hate paying for those 'tabs' for my car!!!!!

[Texas Proud]

Quote:

Originally Posted by jazz4cash Doesn't the 18.4 cent Federal tax go to the highway trust fund? In that case we are simply paying for the roads we use, which is probably a bargain.

It does not mean it goes to highways.... they can 'borrow' the money and spend it for Iraq or any other thing they want...

OR, the bridge to nowhere...

[Texas Proud]

You forgot to put in the excise taxes they get for the extraction of the oil from the ground..

I remember a LONG time ago, when gas was in the 1.25 range or so.... someone from Exxon said that something like 53% of the cost of a gallon of gas was going to pay some kind of tax...

I think this was like I said earlier... from the extraction from the ground... to the taxes on the dividends paid to the shareholder...

[Midpack]

Estimated Gasoline Price Breakdown & Margins Details for California. Looks pretty clear taxes are far larger.