Gas tax problem?

[MontereyVol]

McCain has called for a gas tax free holiday between Memorial Day and Labor Day.

Clinton has called for a gas tax free holiday and a windfall profit tax on oil companies to make up the difference.

Obama, has called both a bad idea.

CNN Political Ticker: All politics, all the time Blog Archive - Clinton hits Obama directly in new ad « - Blogs from CNN.com

This is one decision Obama has made I agree with.

 

[droski]

i really don't see what this accomplishes.

all these things are a clear sign of an oil bubble. i bet we see $80 a barrell oil by october.

 

[MontereyVol]

I was wondering if anyone sees the loophole in Hillary's plan?

 

[volinbham]

i really don't see what this accomplishes.

all these things are a clear sign of an oil bubble. i bet we see $80 a barrell oil by october.

Not to mention the removal of a negative stimulus (pain at the pump) for moving away from gasoline dependence.

 

[droski]

I was wondering if anyone sees the loophole in Hillary's plan?

you mean besides the fact that it is socialism?

why don't we sue take two for a windfall tax on their GTA earnings

 

[KB5252]

I was wondering if anyone sees the loophole in Hillary's plan?

Do you mean that suspending the tax and then implementing a windfall tax would cause BIG OIL to pass that on to the consumer?

 

[g8terh8ter_eric]

Why can't we just refine the Oil Shale in the Rockies?? It's the largest in the world and it would be cheaper.

 

[BigPapaVol]

i really don't see what this accomplishes.

all these things are a clear sign of an oil bubble. i bet we see $80 a barrell oil by october.

contrary to what they might like, it will definitely highlight that the gov't is the biggest winner in the gas price hikes and highlight the fact that Uncle Sugar drives gas bills through the roof.

I can't imagine that either of the candidates wants that highlighted for the long term.

 

[g8terh8ter_eric]

contrary to what they might like, it will definitely highlight that the gov't is the biggest winner in the gas price hikes and highlight the fact that Uncle Sugar drives gas bills through the roof.

I can't imagine that either of the candidates wants that highlighted for the long term.

Doesn't OPEC drive the prices??

 

[MontereyVol]

Do you mean that suspending the tax and then implementing a windfall tax would cause BIG OIL to pass that on to the consumer?

Bingo!!

Solutions for America!!

 

[VolBeef88]

Doesn't OPEC drive the prices??

They are part of the driving force. Demand is the other part.

 

[VolBeef88]

Doesn't OPEC drive the prices??

For gasoline actually they play a smaller role than the media reports. Most gasoline oil that we use comes from Canada. Light Sweet crude.

 

[TennTradition]

Why can't we just refine the Oil Shale in the Rockies?? It's the largest in the world and it would be cheaper.

The technology is still not ready for affordable extraction of oil shale. It is getting closer. The technology is fascinating, though. I can't believe that they can actually afford to do it - but Shell says that they can (freeze a good portion of the earth around the shale and then boil the section they care about).

I will also note that when we start getting oil from the shale, not all problems are solved. First, not all oil is created equally. We are used to getting 19 (or so) gallons of gasoline from a barrel of oil - that number will go down with oil shale. I'm not sure how much, but I know that it is heavier oil than light sweet crude, for example. Also, oil - no matter where it is drilled or extracted - is a global commodity. So, while the added supply should put downward pressure on the global price, there will be huge demand for the American product from overseas until the dollar rebounds. I'm not sure how much untapped demand exists in China and India, but I think that we all know that it is growing by the day.

 

[droski]

contrary to what they might like, it will definitely highlight that the gov't is the biggest winner in the gas price hikes and highlight the fact that Uncle Sugar drives gas bills through the roof.

I can't imagine that either of the candidates wants that highlighted for the long term.

we still have among the lowest gas taxes of any country in the world.

 

[MontereyVol]

we still have among the lowest gas taxes of any country in the world.

So, taking taxes out of the price wouldn't bring it down that much?

 

[Lexvol]

So, taking taxes out of the price wouldn't bring it down that much?

It would bring it down almost 40 cents a gallon in KY and TN. I guess that is $10.00 bucks a fill up for the old family truckster.

 

[volinbham]

the old family truckster.

Don't forget the dog tied to the bumper...

 

[MontereyVol]

State taxes would still apply.

 

[Lexvol]

In KY and TN the rate is about 21 cents a gallon. The federal is 18 cents.

 

[allvol123]

In KY and TN the rate is about 21 cents a gallon. The federal is 18 cents.

So in essence these higher prices hurt tax revenues...correct? If a person used to spend $1 dollar on gas...the government made 39% on a gallon purchased by the consumer. At $4...the government makes roughly %10 on that same gallon purchased?

 

[g8terh8ter_eric]

For gasoline actually they play a smaller role than the media reports. Most gasoline oil that we use comes from Canada. Light Sweet crude.

But the thing is Oil is a traded commodity that is driven by OPEC saying one bad thing and the price skyrockets. I remember before it was $100 a barrel when OPEC said that they were thinking about not raising production and thinking about cutting production in certain areas. That's when the price jumped up MANY dollars.

 

[g8terh8ter_eric]

So in essence these higher prices hurt tax revenues...correct? If a person used to spend $1 dollar on gas...the government made 39% on a gallon purchased by the consumer. At $4...the government makes roughly %10 on that same gallon purchased?

Trying to blame the government on anything gas or oil related is like trying to blame a vegetarian for eating your porterhouse steak.

 

[allvol123]

Trying to blame the government on anything gas or oil related is like trying to blame a vegetarian for eating your porterhouse steak.

I wasn't blaming anyone for anything. Just asking if higher prices hurt tax revenue collections since it is based on per gallon.

 

[IPorange]

So in essence these higher prices hurt tax revenues...correct? If a person used to spend $1 dollar on gas...the government made 39% on a gallon purchased by the consumer. At $4...the government makes roughly %10 on that same gallon purchased?

Yes, the government is taxing per a gallon, so the more gas per a gallon costs the less per dollar of consumption they are recieving.

But in actual taxes collected per fill up, that hasn't changed. People are using more gas in this country all the time. Studies have shown that despite the carpool lanes, buying up of hybrids, etc, people are still using more gas collectively than the year before, and the year before that. Look at the cars on the road. The majority are still big SUVS and personal trucks, loaded with only one person. We just aren't being efficient, on top of it all.

 

[droski]

But the thing is Oil is a traded commodity that is driven by OPEC saying one bad thing and the price skyrockets. I remember before it was $100 a barrel when OPEC said that they were thinking about not raising production and thinking about cutting production in certain areas. That's when the price jumped up MANY dollars.

the market doesn't believe what opec says anymore. this spike in prices is almost soley due to speculation in the futures market and particially the war in iraq. as i said earlier if opec could still control prices they would surely have made oil $100 a barrel 20 years ago.