The government wants a regressive gasoline tax and if that doesn’t work, they will tax you by the miles you drive. One way or the other, gasoline taxes are going up.
Gas & oil companies make about a 7 cent per gallon profit on every gallon of gas sold while the state and federal government make an average of about a 49.5 cent per gallon profit or 12% (depending on the state). The profits for gas & oil companies do not include the profits from refining (about 29.6 cents per gallon). Gas stations make almost nothing and need to make their money from car repairs and convenience shops. The government is not satisfied with their take of the profits for doing nothing.
The states governors are running out of cash and are heading back to the gasoline tax kitty. Many plan to raise the gas taxes to cover transportation costs such as road repair but the money will continue to be used for other government purposes.
The federal government will be back at the trough soon as well.
They are looking for a regressive tax, meaning everyone gets hit the same. When this doesn’t work, they will go to the “tax by the miles you drive” tax.
Ben Husch, a National Conference of State Legislatures director, is calling it a “bold action.” Raising taxes is not only “revenue” and an “investment,” it can now be a “bold action.”
Two states already approved the tax. Wyoming’s tax will go from 14 cents to 24 cents a gallon in July and California’s tax will go up 3.5 cents to about 52 cents tax per gallon.
Maryland’s O’Malley wants to raise the taxes by 4% in 2014, bringing their gas tax to 43.7 cents in five years, almost doubling their rate by 2018.
Fourteen other states including Maryland, Massachusetts and Minnesota are considering similar increases.
These proposals appear to have bipartisan support.
Nationwide, the taxes vary by state with the higher taxes being paid mostly by liberal states.
OPEC, when criticized for their percentage of the profits which is about 65%, has pointed out that our own government is robbing us.
The government will inevitably tax you by the number of miles you drive. States are getting wise to the loss of tax revenue with more people driving gas efficient vehicles so they need to increase their take. In addition to these already high taxes on gasoline, you will pay every time you fill up. Gas pumps will have a little computer inside which will communicate with your car’s odometer to calculate how much you owe.
They will probably say it’s necessary because of global warming, oh, excuse me, I mean climate change, oh no, wait, I mean climate chaos!