Bush blames Congress for oil prices; OPEC says crude may hit $200 - Truckers' Trucking Forum

Cybergal · **^ Top** #1 04.30.2008

Bush blames Congress for oil prices; OPEC says crude may hit $200
4/29/08

Quote:

President George W. Bush blamed congressional Democrats Tuesday, April 29, for high oil prices and renewed his call for drilling in the Arctic National Wildlife Reserve in Alaska.
Bloomberg News reported Bush also dismissed bipartisan calls to stop adding more oil to the nation’s strategic petroleum reserve, saying “I don’t think it would affect price.”

Jim Johnston, president and CEO of OOIDA, wrote to the president in January asking that he stop diverting oil to the reserve. Members of Congress have also asked Bush to stop the diversions temporarily so that more crude would be available for fuel production, which they say would lower diesel and gasoline prices.

Meanwhile, Big Oil continues to post record profits. For the first quarter of this year, BP Amoco LLC made $6.6 billion in profits. In the same 90-day period, Shell Oil Co. hauled in $7.8 billion in profits.
On the other side of the globe, the president of OPEC warned this week that the price of oil could go to $200 per barrel. The Financial Times quoted Algeria’s oil minister as saying the recent run-up in price is largely due to the current weakness of the U.S. dollar.

He said that every time the dollar drops in value by 1 percent, the price of a barrel of oil goes up by $4. On Tuesday, April 29, oil was trading around $117 per barrel in New York at midday.
http://www.landlinemag.com/todays_ne.../042908-05.htm

BlueNosedBstd · **^ Top** #2 04.30.2008

Of course the greedy oil companies are to blame here as well as our elected officials.

Part of the increase here in NYS is that our elected officials require different grades(costly emission additives) be sold based on the "county" the gas is sold in here as a measure to reduce emmisions, thus gas prices can be quite a bit more expensive just by crossing a county line here in the state.

There is no incentive whatsoever for gov't to reduce taxes on fuel either as they are partners in crime with the oil companies(and every other product that's taxed to death). The higher the price goes, the higher the tax coffers fill with free-found money for the irresponsible system to feed upon.

Ya want to turn this economy around?
Give the public more disposable income via massive tax cuts(abolish the illegal income tax for starters), and watch what happens.

rex · **^ Top** #3 05.01.2008

Quote:

Originally Posted by BlueNosedBstd

Of course the greedy oil companies are to blame here as well as our elected officials.

The higher the price goes, the higher the tax coffers fill with free-found money for the irresponsible system to feed upon.

Misstatements such as this have destroyed any credibility you may have to address this issue.
People who know what they're talking about realize that fuels are taxed at a fixed rate per gallon. This tax remains exactly the same no matter what the price of gasoline and diesel are. In actuality all but the profoundly ignorant will realize that as the price of fuel creeps ever higher, the percentage of the price represented by taxes, both federal and state, grows increasingly smaller.

EXAMPLE: Diesel cost per gallon $3.25 federal tax .244/gallon
$4.05 federal tax .244/gallon

rx

BlueNosedBstd · **^ Top** #4 05.01.2008

Misstatements?

Oil companies posting record profits as fuel prices have doubled in the past few years. A misstatement?

We're consuming more (gallons of)fuel than ever, thus the tax coffers continue to fill with found tax money. Another misstatement?

Quote:

as the price of fuel creeps ever higher, the percentage of the price represented by taxes, both federal and state, grows increasingly smaller.

Good point and yet another valid reason for the system to offer relief. Won't happen, although as we're about to start hearing all the empty promises as it's election season.

Roadmedic · **^ Top** #5 05.01.2008

Quote:

Originally Posted by rex

Misstatements such as this have destroyed any credibility you may have to address this issue.
People who know what they're talking about realize that fuels are taxed at a fixed rate per gallon. This tax remains exactly the same no matter what the price of gasoline and diesel are. In actuality all but the profoundly ignorant will realize that as the price of fuel creeps ever higher, the percentage of the price represented by taxes, both federal and state, grows increasingly smaller.

EXAMPLE: Diesel cost per gallon $3.25 federal tax .244/gallon
$4.05 federal tax .244/gallon

rx

Not really totally true.

Alot of states now have sales taxes added to the price of the fuel. These taxes increase with the actual price of the fuel. Our local ambulance fund was excited over the additional money received during the last 6 months due to the price of fuel.

bullhaulerswife · **^ Top** #6 05.01.2008

Quote:

Originally Posted by Roadmedic

Not really totally true.

Alot of states now have sales taxes added to the price of the fuel. These taxes increase with the actual price of the fuel. Our local ambulance fund was excited over the additional money received during the last 6 months due to the price of fuel.

You are so very right. Nebraska just added another penny to the sales tax on fuel here. People are NOT happy about it either.

rex · **^ Top** #7 05.01.2008

Quote:

Originally Posted by BlueNosedBstd

The higher the price goes, the higher the tax coffers fill

This is clearly a misstatement. You, like a surprisingly large number of people seem to be under the mistaken impression that fuel is taxed on a percentage basis. In reality fuel is taxed (both state and local)on a fixed flat rate per gallon; hence it makes no difference what the cost per gallon is, the tax per gallon remains exactly the same.
rx

Roadmedic · **^ Top** #8 05.01.2008

Quote:

Originally Posted by rex

This is clearly a misstatement. You, like a surprisingly large number of people seem to be under the mistaken impression that fuel is taxed on a percentage basis. In reality fuel is taxed (both state and local)on a fixed flat rate per gallon; hence it makes no difference what the cost per gallon is, the tax per gallon remains exactly the same.
rx

Just to let you know, I have listed what makes up the prices in Illinois.

You can check the other states at [LINK POSTED BY MEMBER] Only Members Can View This Truck Forum Link.

I couldn't get the chart to import right.

Gas is taxed 57.9 and diesel is 65.7 In addition to the motor fuel taxes there is a state sales tax of 6.25%. Personally, my county adds 1% and several cities have added another 1%.

rex · **^ Top** #9 05.01.2008

Quote:

Originally Posted by Roadmedic

Just to let you know, I have listed what makes up the prices in Illinois.

You can check the other states at [LINK POSTED BY MEMBER] Only Members Can View This Truck Forum Link.

I couldn't get the chart to import right.

Gas is taxed 57.9 and diesel is 65.7 In addition to the motor fuel taxes there is a state sales tax of 6.25%. Personally, my county adds 1% and several cities have added another 1%.

Actually my friend, I believe this thread was initially about the FEDERAL tax on motor fuels which is a fixed .244 on diesel. Most states also tax at a fixed rate per gallon. The fact that certain localities choose to gouge with an additional sales tax based on a percentage of gross sales is irrelevant to this discussion.
How do these additional taxes square with IFTA anyway?

According to my Rand McNally fuel is taxed at .35/ gallon in Illinois. Where are you getting your information?
rx

Roadmedic · **^ Top** #10 05.01.2008

Quote:

Originally Posted by rex

Actually my friend, I believe this thread was initially about the FEDERAL tax on motor fuels which is a fixed .244 on diesel. Most states also tax at a fixed rate per gallon. The fact that certain localities choose to gouge with an additional sales tax based on a percentage of gross sales is irrelevant to this discussion.
How do these additional taxes square with IFTA anyway?

According to my Rand McNally fuel is taxed at .35/ gallon in Illinois. Where are you getting your information?
rx

The link I posted reflects that price. It includes the state and federal together.

I understand that the feds receive the set amount, but many of the states receive a set amount and the benefit of a sales tax on top of it.

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