Why does our government like oil so much?

[BeachSiO2]

Gas taxes pay for highway and bridge maintenance and construction projects, and other forms of transportation projects (such as mass transit) so if those receipts are reduced, taxes WILL be raised on other items.

 

[Lynnie]

And, the US has the lowest tax on gas in the world, except for Mexico and perhaps Venezuela. For solar and wind, I'm sure the government would carve out a way to tax for a delivery surcharge, etc.

 

[beachFool]

Why does our government like oil so much? I've been asking myself this often lately. Is it because they make more revenue from taxing it than the oil companies make from producing it? Think about it. What happens if we ween ourselves off of oil and implement solar or wind power at our own homes, something that the gov't cannot monitor or meter? If they cannot monitor it, they cannot tax it, and therefore, I think they will never allow us to find our own free sources of energy. Does my theory sound way off?

No off completely but Is it because they make more revenue from taxing it than the oil companies make from producing it?

Is way off base. Exxon Mobil is the most profitable company in the world.

Remember this is the Fortune 500 which only includes US companies.

Fortune 500 2010: Fortune 1000 Companies 1-100 - FORTUNE on CNNMoney.com

 

[Desso]

The Tax Foundation - State and Federal Treasuries "Profit" More from Gasoline Sales than U.S. Oil Industry

Granted this is only through 2005, but I think the picture is pretty clear on who gets the cash.

 

[Desso]

The Tax Foundation - Tax Gouging at the Pump

Updated study (2008) and more information on "the gouge".

 

[30ashopper]

Which makes you wonder, what would they tax if we all stopped using gasoline? Is there a solar "sunshine tax" in our future? Give the democrats time, they'll do it, I guarantee it!

 

[Desso]

Yes, and all you sun greedy Florida people, all warm and tanned, we are going to tax you the most.

 

[beachFool]

Well the Tax Foundation is not exactly unbiased.

That graph is entirely misleading. Reminds of that line-Figures don't lie, but liars do figure.

The total taxes paid do not come directly from energy companies bottom lines.

Rather use taxes (included in the graph) are collected from consumers at the pump.

Not a penny of use taxes comes from the industry. They are just middlemen, state governments pay the merchant for collecting it.

A more accurate graph would show royalties collected from directly from oil companies.

I agree that if Chelco could figure a way to put a meter on a solar panel we would go down that path in a heartbeat.

I have no qualm with anyone making a profit. There is no denying there is soon-to-be unhidden cost socieity pays a cost for our addiction to carbon fuels.

Don't believe me. Just stick around South Walton for a couple of months.

The industry as a rule puts a very low priority on public safety, there is no ROI.

 

[Everytime]

The total taxes paid do not come directly from energy companies bottom lines.

But the total taxes DO go to the government(s), regardless of who is paying them, so Murray's question was not entirely off base. I know here in Alabama the State is very protective of it's Oil & Gas Trust Fund, so much so that our Governors and federal legislative delegations have historically favored expanded drilling int he Gulf of Mexico because Alabama collects some type of royalty on any oil and gas which would pass through Mobile Bay.

 

[poppy]

But the total taxes DO go to the government(s), regardless of who is paying them, so Murray's question was not entirely off base. I know here in Alabama the State is very protective of it's Oil & Gas Trust Fund, so much so that our Governors and federal legislative delegations have historically favored expanded drilling int he Gulf of Mexico because Alabama collects some type of royalty on any oil and gas which would pass through Mobile Bay.

And they should, the oil and gas belongs to the people, not the oil companies.