Tag: Fuel tax

Stop that profit!

Unless you live under a rock, you too have seen the massive spike in the price of a gallon of gas. Nationally the average is now $4 a gallon, with many of the liberal bastions having even higher prices. And then you hear news like this:

NEW YORK (AP) — Gasoline futures tumbled almost 8 percent Wednesday after a government report added more evidence that Americans are driving less because of higher pump prices. The Energy Information Administration said that U.S. gasoline demand dropped 2.4 percent last week, the largest drop in seven consecutive weeks of demand declines. Analysts said motorists have been forced to conserve gasoline with pump prices close to a national average of $4 per gallon.

“That $4 number is not just having a psychological impact, but a direct impact on drivers,” energy consultant Jim Ritterbusch said. “Normally, with the economy recovering, you’d expect gasoline demand to go up, but that’s not happening.” Analysts said they’re now predicting a flat driving season this summer. At best, motorists will use about as much gasoline this year as they did in 2010.

“My opinion is that they started cutting back when prices hit $3.50″ per gallon, oil analyst Andrew Lipow said. “We haven’t seen the full effect of that just yet.” Decline in demand at the pump has helped offset a variety of operating problems that idled numerous refineries around the country over the past few months.

So Americans are feeling the pinch and driving less, and the price of crude is plummeting. The price at the pump is not going to come down as fast, though. Contrary to the conspiracy theorists though, that’s because the gas dealers charge what they need to buy the next refill, and that’s not going to happen until the gas & other products currently refined at higher costs makes its way through the system and the cheaper oil makes its way in.

Of course, you read the comments, and the moonbats are out in full force blaming the evil oil companies and their profits! I already wrote about putting oil company profits into perspective. It’s ridiculous how these moonbats are angry as hell at the 2 or 3 cents per gallon profit the oil companies make, while ignoring the fact government – federal and state – is gouging people by orders of magnitude more with their gas taxes. They all want more taxes on these evil corporations!

Guess what idiots. Higher taxes will certainly hurt the oil industries total profits, but in the end, especially when you are feeling the pinch at these higher prices, it will hurt you far more. There are several reasons that the current government bosses aren’t talking about anything but more taxes too, but one of the big ones is that they rake in far more income when prices are higher, even when sales drop, because the federal tax rate is tied to price at the pump. Allowing these hacks to jack that income, totally at our expense since the cost will come from our pockets, not the oil companies, and then because you are a spiteful stupid moron that thinks tax hikes or confiscatory taxes stick it to big oil, is not just stupid, but insane.

Want cheap gas? Make supply abundant enough that nobody – well, nobody but a big and intrusive government, hell bent on controlling you, and on a crusade to redistribute wealth, I should say – can artificially jack up the price due to consumer choice, and you will get it. Econ 101. Drill for your own oil, and compliment it with other viable technologies. Sadly the envy cult, they also pretend to be about social justice, would prefer to cut off their nose to spite their face, than to let those they don’t like make profits. All of them know profits are just the rich stealing from the poor anyway….