Speakeasy forum: Federal Fuel Tax

The higher the price of gas and other fuels, the more gallons it takes to fill the tank (cars, diesel for trucks, busses, trains, boats, etc., home heating fuel, etc), thus more revenue based on per gallon.

BO keeps saying that the US is producing more fuel, but he is neglecting to say that even more is being shipped overseas and not being kept here to keep our costs down for the citizens here. Exxon alone pays more than 40% in taxes...don't have numbers yet on the others. Chevron/Texaco is owned by Venezuela and I'm not sure how they are structured tax-wise. We just gave $6B to Brazil to drill there rather than allow the Keystone pipeline to be built here. We have closed over ten refineries (three in Pennsylvania alone three weeks ago).

Very little of this kind of news actually makes it to the main street media....even with the debate two nights ago, CNN never asked even one question about this rising gas price issue and the domino effect it has on consumers and the economy. In 2008, when gas prices reached $3.50 during Bush's term and we were at 5% unemployment, the MSM and the liberals were all over him every single day about what was he going to do about it and yet not a word regarding now that BO is in office, prices are at $5 a gallon in Los Angeles, CA, and unemployment is at 8.3%.

BO reversed Bush's opening of drilling on the east and west coasts and in Alaska, has shut down refineries, refused the pipeline, called a two year moritorium in the Gulf after the BP spill, closed/shut down coal mines/plants in three states, shut down natural gas drilling in Texas, etc., and yet went on tv yesterday and blamed speculators, Iran, and Republicans for the high gas prices. Last year it was blamed on the Arab Spring, earthquakes, tsunamis, and the Republicans.

And yet, the fuel tax keep rolling into the Treasury and has increased drastically with the rising fuel prices........

but that makes absolutely no sense.

"The higher the price of gas and other fuels, the more gallons it takes to fill the tank"

So, with a gas tank that has a capacity of 40 gallons, when the price increases, it can now take 50 gallons?

Higher prices does not mean more fuel is used.

Mark

when consumption goes in either direction. Higher demand allows for higher prices. Lower demand means less revenue for energy suppliers and they will raise prices to make up the revenue shortfalls. I'm expecting a natural gas price increase will be announced soon due to the mild winter. We've had this happen during other mild winter conditions. Even the use of higher efficiency appliances and gas sipping automobiles are not going to save us money as energy producers will adjust their prices to maintain their desired revenue stream. The same goes for recycling to save the planet. We don't save money this way either. At best, we can hope to stretch the supply of energy and other materials by conserving them. We pay when we're wasteful and we pay when we're thoughtful. Get used to it.

are getting less fuel for the cost and therefore filling up more frequently.

It's still the same amount of gas usage unless they're driving more as prices increase, which seems unlikely.

How much did the federal gas tax get reduced during the last few Republican administrations?

would normally fill their tanks once a week to get to and fro from work plus taking the kids to school activities and grocery shopping, etc., they are now filling up twice a week to do the same thing. It's not the same amount of gas at all.

If a ship tanker hauls a load to China or another country that now has three times as many cars as they did five years ago, they now have to haul three times as many tankers to the same destination....more Federal taxes imposed.

If one load of heating fuel has to be repleneshed twice now in order to get the same amount used to heat a home, that's more Federal taxes.

And that list goes on for other vehicles........same results.....more Federal taxes.

If the Feds don't reduce the tax because it's not generally done, the excess tax collected on the fuel could be used to reduce our national debt.

If they're putting LESS GAS in the tank with each visit to the gas station because of the cost, then they are not "filling it twice."

Your premise is that if gas costs more, it takes more gas to fill the same tank. Your own words:

The higher the price of gas and other fuels, the more gallons it takes to fill the tank.

You're not seriously standing behind that, are you? The only things that cause increased gas usage are increased driving and decreased fuel economy.

Actually the one on my W100 pickup is called a "reserve tank".

With every car I ever had, the gas tank capacity remained the same regardless of the price of fuel. Go figure.

Instead of filling the tank with liquid we'll fill the tank with money/bills. A gas tank will hold so many "bills" Let's say it will hold 80.

lets say that last week it cost $80 to fill the tank...so you put 80 one dollar bills in the tank, and your tank is full.

This week the price of gas increased to 10 times last weeks price.(Exaggerated so I could use round numbers) So now it would cost $800. Instead of putting 80 one dollar bills in the tank...you put 80 ten dollar bills in the tank.

The actual volume of the tank hasn't changed...just the value of the contents in the tank.

And then we'll blame it on Obama....]:)

Suppose you were trying to sell 2 boxes...both the same size...1 box was full $1bills and the other was full of $10 bills...Which one cost more?

Not that I blame her.

just watching the liberal spin on higher fuel prices being an OK thing because it fits into the BO agenda with his administration cronies.....the higher they go, the more they can push the failed green policies, and it doesn't matter that the public has to fill their tank twice in order to go the same distances in a week anymore.

Your original statement was:

"The higher the price of gas and other fuels, the more gallons it takes to fill the tank"

A tank holds the same number of gallons no matter how much those gallons cost. And if someone is filling a tank twice in the time they used to fill it once, then they're using twice as much gas which means they're driving roughly twice as much. That is also irrespective of how much the gas costs.

There is absolutely no correlation between how much gas costs and how far a car can go on a full tank.

Period.

It might cost twice as much to fill it but it would still go the same distance.

Diana

since the same number of gallons is used to fill a tank, and since your article in your first post explained that Federal taxes are set at a fixed rate of 18.4 cents per gallon, it matters not how much a tank full of gas costs the user as far as ta revenue is concerned.

The Federal Government takes the same 18.4 per gallon cents from a full tank of gas no matter what the petrol prices are.

Perhaps your 'ire' should be addressed to the oil companies and not the federal Government.

Mark

the gov charges a % of the price per liter

This week Montreal drivers were unexpectedly walloped, with prices rising 14 cents overnight -- from roughly $1.30 per litre on Monday to $1.44 on Tuesday.

works out to approx 64¢ /gal increase

from $5.90 to $6.53/gal

Fortunately I only use a tank of gas per month, but I still cry.

Around here, it's been a ratcheting thing. Though it can happen at any time, most price increases are happening on Thursdays beginning in the mid to later morning. Somewhere during the weekend or first of the week, the prices creep downward. Then, on Thursday, they shoot upward. I'll notice a few stations raising their prices and will continue to one that has apparently not gotten the word. We've had two rather large hikes in the past 2 weeks with the total increase over this period being about 50 cents. Yesterday was Thursday and the price jumped from about $3.45 to $3.69. While I can't escape the inevitable increases, I've learned to top the tank on Wednesdays.

but the logic escapes me. Of course as fuel costs go up customers have to pay more, but your top post is about customers paying more but getting less per gallonl and so tax revenues increase.

Simply put. If people buy more fuel then Yes, tax revenues increase. But suppliers increasing the cost of fuel at the pump does not increase tax revenues if that tax is in cents per gallon and not a %age of the cost per gallon.

Revenue will only increase if consumption of gas and fuel increases.

Tell me what I am missing in your argument.

Mark