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Section A: General News


Editorial: Tired of paying high gas prices




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Loyce McCarter
Guest Editorial
April 17, 2013 | 1,143 views | 1 comment

We constantly hear complaints about the terrible profits that oil companies make and something needs to be done about it! As we have been paying in excess of $3.40 per gallon for some time, we are tired of the price and want something to be done. In some areas, such as Chicago and Hawaii, the price is more than $4 per gallon. Had enough?

But, the message that we hear is that the oil companies are gouging us with each fill- up. We are told by the government that Exxon makes a profit of 7 cents per gallon!

And what do the all companies do with their profit? They pay dividends to stockholders. They look to new products and/or services or ways to improve their products.

And what do oil companies do with their profits? Do they maybe use the money to look for more sources? Do they use the monies to drill, drill, drill, and maybe supply us with more gasoline and therefore, there is a possibility if they hit a really big reserve, the price could be reduced for all of us? And they have to pay taxes on their profit, so that is more funds going into the government.

But, how much does the government make on a gallon of gas? On every gallon of gas that is pumped into our vehicles, we pay local taxes, state taxes, and federal taxes and their take is 48.1 cents per gallon!

Yes, in some states, the price of taxes is lower because the local and state taxes are different. In Texas the government portion of a gallon of gas is 38.4 cents, but in Illinois the price of the tax is 61.2 cents and in the Northeast it is up to 63.6 cents per gallon.

Those are the taxes that we see. How about the taxes that are hidden; wonder what percentage of the price of a gallon of gas is taxes?

And there is legislation offered by the Democrats in 2010 in Congress that would add a cap-and-trade price to every gallon of fuel, be it gas, diesel, and jet fuels. This legislation did not pass, but it is still thought of by some Congress members, so we need to be aware of the problems with this legislation.

How would cap-and-trade work? Those that introduced this legislation said that a cap is the only certain way to limit pollution and the trading would lead to investment and innovation. While this did not pass, there are several states in the Northeast that have experimented with their own modest cap on carbon pollution from power plants. And just recently the Regional Greenhouse Gas Initiative announced that it would continue to cut emissions by tightening the cap between now and 2020.

But how much carbon dioxide will this actually cut in the grand scheme of things? Not much. Between now and 2020, the new TGGI scheme is hoping to cut annual emissions by about 13 million tons. That’s about 0.06 of all power plant emissions in the United States last year. What would it actually accomplish?

Presently the average American’s budget must include approximately 5 percent of their monies for transportation. How much more will be added with the cap-and-trade? And how much of every gallon of gas is really tax?

And, this tax and all taxes on fuel are included in the price of that loaf of bread and all our other purchases. When the farmer or manufacturer has to pay more for his fuel, he must pass it on or go out of business.

Is there no end to the taking of our monies in taxes? What we pay in taxes on that gallon of gas is astronomical and the profit by the gas company of 7 cents per gallon is nothing in comparison. Let’s get our thoughts in line with the truth and let our congressmen and our senators know how we feel about this taxing, taxing, taxing! And spending, spending, spending!

Loyce McCarter is a resident of Wilson County and works actively for conservative causes.
 

Your Opinions and Comments

 
Harold  
Equatorial Guinea, West Africa  
April 20, 2013 11:51am
 
The well’s we are drilling over here average 75 Million each and that’s drilling and completion costs ONLY. That does NOT include the seismic to find the reservoirs, the engineering (there is an insane amount of engineering that ... More ›

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