Yes, gasoline prices are rising at a rapid rate.
Oh sure, the left from the Dear Leader, President Obama, on down blame the eeeeevvviiiiilllll "speculators". You know, the guys with the stove-pipe hat and the Snidley Whiplash moustache twirling the stache around as they keep jacking up the prices.
But what I do not hear about is the fact that there are taxes on each fill-up of gasoline. There are federal, state and in some cases local taxes on each gallon of gasoline.
This is a very useful chart showing where the combined taxes are the highest and the lowest.
No surprise that California leads the way with 66.1c per gallon of gasoline purchased. The bottom is Alaska were the combined taxes are 26.4c a gallon.
In looking at this chart of average price per gallon by each state, lets look at California. The average price is $4.20c a gallon. If we took out the 66.1c in combined taxes, the total is really 3.54c a gallon. In Alaska, the average price per gallon is $4.19c a gallon. Take away the 26.4c combined taxes and the average would be $3.93c a gallon. Once one starts looking at this state by state, a trend emerges.
The higher gas tax the state, it seems to be a Blue, Democrat state. The lower the taxes tend to be Red Republican states. As in any case, there are some outliers either way.
But what I think should be done is that we pay for gasoline like other items. The unit price and then add the tax at the end of the bill. Like when one buys clothing. There is the price of the item and then where there is a sales tax, it shows on the receipt and then one pays their bill. I think that what we have now is the most disingenuous attempt to rob the public that governments at all levels have come up with.
Here in California, long before the spike in actual gasoline prices, as filling up the jalopy, I look at the signs around the pump that break down the actual taxes paid in the gallon price. But few, if any, take the time to do so. I would often comment to Mrs. RVFTLC that if people only knew how much the gallon of gasoline is taxes, they would be outraged.
So, lets look at the price of gasoline in California before taxes and with the taxes.
Taking a 17.5 gallon tank at $3.54c a gallon, if one fills up at that price, the total is $61.95c. That is a lot of cash. Add the taxes of 66.1c a gallon. That adds a total of $16.84c bringing that $61.95 to the grand total of $78.79c to fill up a
17.5 gallon tank.
With unemployment here in California at 12% plus, and more and more people depending on government assistance, one way the government can help is declaring a tax holiday. Just pay the actual price of gasoline for six months until there is some sign of economic growth and a serious decline in unemployment.
Maybe to the limousine libs out there, $16.84c a fill up is not a big deal. But, add that up by the week and it is over $67 dollars. If there are families and people on the margins out there, and there are, this would be a way to help get them to their jobs and or to look for work. To get to potential interviews.
Then all governments need to realize that this is not a good way to raise money. Because of the spike in prices, based on future potential events, people will adjust their lives accordingly. Another drawback is that people who are working will just drive less. Not take as many vacations in the car, crossover, SUV or trailer. They will not fly because the price of tickets, based on gasoline prices, are going up.
Yes, gasoline prices are going up. But taxes are staying the same. And some people think that yes, we should be paying even more in gasoline taxes. Some believe that this is good for the planet.
It is not good for the planet to have mass unemployment and an economy on the brink. A gas tax holiday and cutting these taxes is a much better way to go to recover the economy and produce tax revenues.
A very big HT to Kathleen McKinley, aka Right Wing Sparkle!