While a number of states have removed or suspended their gas taxes, North Carolina has absolutely no intentions of doing the same for the people of North Carolina. Why? Because "they can't afford it."

That whole attitude should be troublesome to anyone who likes representative government. The politicians believe that money is ALREADY theirs, and that they have an absolute right to that money and to spend that money. Instead, the way this country was set up was that government was supposed to be responsible to the people and answer to the people.

I decided to show exactly how much profit and taxes really are in an average gallon of gas:

Currently the tax on gasoline in North Carolina is 17.5 cents plus 7% of the average wholesale cost of gasoline for the previous six months -- so as the price of gas increases, the taxes you have to pay increases. AND, if the price of gas goes down in the near future, the taxes will go UP because of the current higher prices!

Using published numbers of the NC General Assembly, the current average wholesale gas prices for the previous six months is 1.36. Now before you start screaming about gouging and profits, realize a few things:

1. That's the average over the past six months -- including five months during which there was NOT a run on gas and a public scare about supply, causing people to hoard gas. The current wholesale price of gas is certainly higher.

2. Add to the cost of selling you that gasoline first the state taxes -- currently 27 cents a gallon.

3. Add to that cost the federal gas tax -- 18.4 cents.

4. Add to that the cost of the trucks who deliver the gas, the electricity for running the pumps, the payroll for having people work at the store, the taxes on the buildings, the payroll taxes, piles of insurance, and many other details.

Without taking into consideration #4 above, that's putting the absolute minimum price of gasoline, when it was selling for $2.30-$2.50 (before Katrina), to $1.814. That's a massive 59 cents a gallon -- before having to pay for all those things listed in number 4.

So when you fill up your tank with your 15 gallons, you're giving the gas station owner a whopping $8.85 to pay all his employees, employee benefits, insurance, and other bills -- while giving the government $6.81! I'm amazed they can stay in business and only charge what they're charging.

Posted by: Ogre at 04:08 PM | Comments (6) | Add Comment
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