Paul Franklin wrote:
On Sat, 13 Sep 2008 09:02:07 -0500, Tim Daneliuk
wrote:

snip

As (gas) prices
rose, the greatest "windfall" was experienced by government
taxation entities.

snip

The federal gasoline tax and most if not all state gas taxes are per
gallon, not percentage. Gas tax revenue has declined since prices
have risen dramatically because folks are using less gasoline and
diesel.

We are foolish to consider using whatever reserves of US oil we have
now. Far better to wait until we've used up all the rest of the
world's oil, and then we will have some left. Why it's the strategic
reserve in grand style! (Not really my point of view, but makes more
sense than most of the opinions being floated out there.)

Of course the oil companies want more offshore leases now, even though
they aren't drilling the ones they have now and don't have the crews
and equipment to drill them all anyway. They can get the leases for a
song now, compared to what they will cost them in 10 or 20 years when
they will start to get serious about using them.

Paul F.

What about the local and state taxing bodies? The sales taxes in various
flavors that are levied are certainly not per gallon, but a percentage.
The government has gotten far more out of this blip in gas prices
than have the eeeeeevil oil companies. Oh, and if those aforementioned
oil companies are not profitable, just who do you propose will:

a) Get new oil for consumption (The TSA, perhaps?)
b) Repair the consequent damage done to institutional investments
like 401Ks and union retirements funds -funds that depend in part
to a solvent and profitable oil industry.


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Tim Daneliuk
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