Is It Governments Job To Punish By Taxing
Ken Hughes
May 29, 2008
The currents Presidential Candidates seem to think it's the governments job to determine how it's citizens should live and act. It's governments job to serve and protect not to determine public moral and economic standards [or lack of.] Government bureaucrats both elected and appointed have found that by increasing and decreasing the tax burden on the public they can alter behavioral patterns to suite their agendas. Taxes are meant to support our government and they're intended to follow the guidelines clearly stated in the constitution. Taxes were never meant to be a carrot or a big stick for the purpose of politicians using them as barter for personal and political gain.
Somewhere between George Washington and George Bush congress seems to have become the self proclaimed and the self anointed Royalty of government. The arrogance among some in congress is very near the point of being criminal. Last week Maxine Waters addressing the energy issue said perhaps it was time to consider nationalizing the oil industry. When challenged she said she was only suggesting it as an alternative to the high price of gasoline. Congresspersons don't make statements they haven't thought through first however in Ms. Waters case thinking is somewhat questionable.
In market economy's [something the world has turned to] supply and demand determines the cost of goods and services. In the case of oil there are several levels of production and distribution. First there's the raw product that's usually owned by the country it comes from, then there's the drillers, they may or may not be what's referred to a Big Oil Companies. Next comes transportation from the wellheads to the refineries, all of this must be paid for before a gallon / pound of product is produced. The money generated to pay the advanced costs comes from the commodities markets where oil futures are traded. Gas then goes hundreds if not thousands of miles from the refineries to the consumer. All of these steps deservingly have profit points. With the exception of taxes, federal, state and municipal, extensive investments have been made before a gallon of gas is pumped and paid for. Taxes take the biggest bite out of price of a gallon of gas, 14 cents of every dollar, [for every dollar profit the oil industry receives various government taxes take four dollars.] Oil Companies are lucky to get 4 cents of every dollar and then that's either paid to stock holders or put back into further research and development.
Who and what is Big Oil? Big oil is made up of millions of stockholders who've had their retirement funds invested in Mutual Funds that in turn are invested in oil company production. Oil companies are not individually owned they're public traded companies If oil companies executives are paid what seems to be exorbitant amounts of money consider what congress wastes on discretionary spending and hypocritical meaningless investigations, the oil executives salaries pale in comparison. The only reason oil is as high as it is now is because it's become an election issue. Two presidential candidates are criss crossing the country using the price of gas to cover their real intention of raising taxes. If American oil companies were allows to produce and refine consistent with other producing countries America would be independent of imported oil and the prices of gasoline would be affordable.
Gasoline isn't just 21/42 % of a barrel of oil and the rest are waste products. Over 60% of every barrel of oil is put to use as chemical and other alternative uses, very little if any is wasted. Technology not government mandates have expanded the efficiency of petroleum products. Technology will continue to create better and more efficient uses of petroleum products. This could come a lot faster and more could be accomplished if politicians would sit down and discuss with the producers of oil related products rather than grandstanding in front of TV News for pure political purposes.
The tug at the wallets for the price of gasoline hasn't reached deep enough into the consumers pockets to bring them to action yet. It's coming and when it does its apt to bit congress in the butt rather than the oil companies. The publics smart enough to know who's expendable in this fight, oil keeps the wheels of industry turning congress produces nothing of significance, their sole purpose in life seem to be finding ways of spending the publics tax money.
Oil is as essential to mans survival on earth as air, water sunshine and a trust in God.
Somewhere between George Washington and George Bush congress seems to have become the self proclaimed and the self anointed Royalty of government. The arrogance among some in congress is very near the point of being criminal. Last week Maxine Waters addressing the energy issue said perhaps it was time to consider nationalizing the oil industry. When challenged she said she was only suggesting it as an alternative to the high price of gasoline. Congresspersons don't make statements they haven't thought through first however in Ms. Waters case thinking is somewhat questionable.
In market economy's [something the world has turned to] supply and demand determines the cost of goods and services. In the case of oil there are several levels of production and distribution. First there's the raw product that's usually owned by the country it comes from, then there's the drillers, they may or may not be what's referred to a Big Oil Companies. Next comes transportation from the wellheads to the refineries, all of this must be paid for before a gallon / pound of product is produced. The money generated to pay the advanced costs comes from the commodities markets where oil futures are traded. Gas then goes hundreds if not thousands of miles from the refineries to the consumer. All of these steps deservingly have profit points. With the exception of taxes, federal, state and municipal, extensive investments have been made before a gallon of gas is pumped and paid for. Taxes take the biggest bite out of price of a gallon of gas, 14 cents of every dollar, [for every dollar profit the oil industry receives various government taxes take four dollars.] Oil Companies are lucky to get 4 cents of every dollar and then that's either paid to stock holders or put back into further research and development.
Who and what is Big Oil? Big oil is made up of millions of stockholders who've had their retirement funds invested in Mutual Funds that in turn are invested in oil company production. Oil companies are not individually owned they're public traded companies If oil companies executives are paid what seems to be exorbitant amounts of money consider what congress wastes on discretionary spending and hypocritical meaningless investigations, the oil executives salaries pale in comparison. The only reason oil is as high as it is now is because it's become an election issue. Two presidential candidates are criss crossing the country using the price of gas to cover their real intention of raising taxes. If American oil companies were allows to produce and refine consistent with other producing countries America would be independent of imported oil and the prices of gasoline would be affordable.
Gasoline isn't just 21/42 % of a barrel of oil and the rest are waste products. Over 60% of every barrel of oil is put to use as chemical and other alternative uses, very little if any is wasted. Technology not government mandates have expanded the efficiency of petroleum products. Technology will continue to create better and more efficient uses of petroleum products. This could come a lot faster and more could be accomplished if politicians would sit down and discuss with the producers of oil related products rather than grandstanding in front of TV News for pure political purposes.
The tug at the wallets for the price of gasoline hasn't reached deep enough into the consumers pockets to bring them to action yet. It's coming and when it does its apt to bit congress in the butt rather than the oil companies. The publics smart enough to know who's expendable in this fight, oil keeps the wheels of industry turning congress produces nothing of significance, their sole purpose in life seem to be finding ways of spending the publics tax money.
Oil is as essential to mans survival on earth as air, water sunshine and a trust in God.