Tuesday, March 25, 2008

Government Gets Rich off of High Gas Prices

Politicians will try anything, but they have yet to repeal the laws of supply and demand. That, in the nutshell, is the cause of rising gasoline prices.

Red Planet Cartoons provided a much-needed public service several days ago by reposting the above cartoon from 2007, "Dissecting Gas Prices". Along with the great graphic, RPC also provides a little info for the economically-challenged.
Corporate profits receive a lot of media attention, but what receives considerably less attention are the corporate taxes paid on corporate profits. Do a Google search for “Exxon profits” and you’ll get about 8,000 hits. Now try “Exxon taxes” and you’ll get a little more than 300 hits. That’s a ratio of about 33 to 1.

I’m pretty sure that Exxon’s tax payment in 2007 of $30 billion (that’s $30,000,000,000) is a record, exceeding the $28 billion it paid last year.

It goes on to say that "Exxon alone paid more taxes than the bottom 50% of U.S. taxpayers"--that's 65,000,000 million taxpayers.

Will the Democrats in the House pass a resolution praising Exxon and it's shareholders for their great contributions to the U.S. budget?

Believe that one and there's some Buddhist fund-raisers we'd like you to attend.

Government at the state and federal levels profit from high gas prices more than oil companies. This is highlighted in California, where the high gas prices might be discouraging drivers, but are making the tax counters' eyes light up in delight--to the tune of $8 billion dollars more than expected.
While motorists fume over the skyrocketing cost of gasoline, state officials say the extra sales tax revenue from high prices at the pump is proving to be a boon as California faces an $8 billion budget deficit.

And are the California lawmakers thinking of rebating some of this windfall back to the taxpayers?

Are you kidding? They're fighting over how to spend it.

Red Planet has all of this. RPC also provides its usual heapin' helpin' of juicy, informative links on the issue.

So, if you don't want to sound like an economic illiterate (like the nearest Dem congressman), head on over to Red Planet Cartoons and check out "Dissecting Gas Prices".

by Mondoreb
image & Source: Dissecting Gas Prices
* Gas Prices: Tax Coffers Fill as Wallets Empty
* Higher Gas Prices Drive up Tax Revenue in State


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