Who's the enemy? Big Oil or Big Government?
· May 21, 12:50 AM
Photo courtesy of MorgueFile.com member pennywise.
This is a really interesting question. I always blame Big Oil when gas prices rocket. Sometimes I blame OPEC. I don't know, there's just something wrong with the fact that it's acceptable in today's world to have a cartel of oil producing nations that set prices.
But then I read this article: (From the Ayn Rand Institute: Who Is Gouging Whom? by David Holcberg.)
To "gouge" means to extort, to take by force--something that oil companies and gas stations have no power to do. Unlike a government, which can forcibly take away its citizens' money and dictate their behavior, an oil company can only make us an offer to buy its products, which we are free to reject. Because sellers must gain the voluntary consent of buyers, and because the market allows freedom of competition, oil and gasoline prices are set, not by the whim of companies, but by economic factors such as supply and demand. If oil companies could set prices at will, surely they would have charged higher prices in the 1990s, when gasoline was under one dollar a gallon! ... The true culprit that we should condemn for driving up prices is the government, which has engaged--with popular support--in the gouging of both the producers and consumers of gasoline. Federal and state governments have long viewed gasoline taxes as a cash cow. In 2003, for instance, when the average retail price for a gallon of gasoline was $1.56, federal and state taxes averaged about $0.40 a gallon--which amounts to a far higher tax rate, 34 percent, than we pay for almost any other product. (Contrary to popular belief, gasoline taxes do not just pay for the roads we drive on; less than 60% of the gas-tax-funded "Highway Trust Fund" goes toward highways.)34 percent. At today's price of $3.00 per gallon (San Antonio, TX) 34% works out to $1.02 of taxes per gallon. So if you have a 15 gallon tank, at 34% gas tax, you're paying over $15.00 in taxes alone. Out of curiosity, I checked to see what we in Texas are actually paying for gas tax. According to gaspricewatch.com Texas charges 20% tax on gasoline. Add to that the Federal tax of 18.4%, and we in Texas pay a 38.4% tax on gas. So, in our situation mentioned above ($3.00 per gallon - 15 gallon tank) Texans are paying $1.15 in taxes per gallon. For a 15 gallon tank, that adds up to $17.28. In my family, 17 dollars we don't have is a meal. Or two. Man...I'm depressed now. Now I remember why I take public transportation. Digg It Here
Labels: gas, government, grrr, oil, taxes
Comments
— Anonymous · Aug 6, 12:15 PM · #
Thanks for the reminders.
I guess I did take the side of consumers who pay exorbitant gas prices (which is everyone, unless you get your gas for free.)
I don't think there's anything wrong with complaining about certain taxes being so high, as long as you actually pay them. It's not like I'm advocating open rebellion.
Though, this was just a commentary on how viewpoints of who we blame are sometimes wrong. Like I mentioned, when I see the gas prices going up I tend go think, "Stupid, greedy Exxon..." when the blame doesn't really lie only with them.
This wasn't meant to make any kind of political statement whatsoever, only to bring attention to the fact that, "Dangit, we pay HUGE taxes on gas and that's not fun!"
DEFINITELY not trying to incite a riot against the government here. :)
Oh, and anonymous, even though we have to "obey the superior authorities" and "pay back Caesar's things to Caesar," those Governments are still run by imperfect men under the influence of this wicked system of things.
Even though the title of this post asked the question of "Who's the enemy? Big Oil or Big Government?", I didn't outright say anyone was the enemy. Since the "whole world is lying in the power of the wicked one," we know who the enemy is.
This post was more about finances and commerce than breaking neutrality.
Sorry if it came across that way, but I don't think I said anything in the post that I wouldn't have said to a CO.
— SM · Aug 6, 01:13 PM · #