Tom's Blog

 Isn't it amazing that every time gas prices go up that people want the government want the old gang to go after the oil companies for all the money they supposidly make from us.  I heard the "top story" about gas prices in the Boston area hitting a record high before the peak vacation period.  Lets look at the record of the government and gas price

In an editorial by Jonathan Williams that appeared in the April 6th edition of the Providence Journal, he states "American motorists pay an average of 47 cents a gallon in state and federal gasoline taxes.  If your vehicle uses diesel fuel, you pay more than 53 cents a gallon on average." 

He goes on to say, "Taxes on gasoline don't end there.  The government collects billions from energy companies in corporate income taxes, offshore royalties, severance taxes, property taxes, payroll taxes; the list goes on."

To give you an idea on how much the money the government takes from the oil companies, Mr. Williams continues "According to Department of Energy data, from 1997 to 2004, federal and state governments extracted $397 billion by taxing the profits of the largest oil companies and an additional $1.1 trillion in taxes at the pump-that's nearly three times what the oil industry made in profits over that same period."

For all the people that want government to do something about gasoline prices, its like all the taxes they have on tobacco.  The government makes too much money off gasoline and diesel fuel to do anything about it.  To end this post, I'll end with Mr. Williams last thoughts, "However, when you feel the pain at the pump, remember who is really cashing in-your good friend Uncle Sam."