U.S. House Representative John Dingell, D-Michigan, has proposed a 50-cents-per-gallon tax increase on every gallon of gas purchased.
As Americans are increasingly struggling with skyrocketing gas prices at the pump, Dingell would only add to their burden by socking them with a 50-cent increase in the already high rate of taxation the government slaps on gasoline.
Dingell and other liberals subscribe to the view that taxation should be used, in part, to change the behavior of Americans. Cigarette and alcohol taxes, for example, are supposed to discourage consumers from indulging, as if this is ANY business of government.
But in this case, what, exactly, is the massive tax increase on gasoline consumption meant to change, other than grounding drivers? What is their alternative? If the objective is to change behavior, then change it to WHAT? Sit at home rather than drive to work?
At present most Americans have no choice but to utilize the present system of transportation and the means of providing energy to that transportation. Americans love their autos, and at present we have no widespread system in place to provide any energy source except for gasoline.
Many if not most Americans now drive only enough to take care of the necessities of life, such as driving to work, to the grocery store, to church, and to the doctor.
What, exactly, are they going to do when ultra-liberals such as Dingell and most of his Democratic colleagues succeed in making travel by auto difficult if not impossible by pricing gasoline out of the reach of most working Americans?
It is not as if the government isn't already making huge profits off of gasoline. As we have indicated many times on the Liberty Sphere, Americans are already paying roughly 60-70 cents in taxes per gallon of gas (it is now higher than this since gas prices have increased and are taxed on a percentage basis). At this moment, even without the Dingell robbery scheme, the government collects at least 7 times the amount the oil companies make in profits on a gallon of gas.
If Dingell gets his way, many Americans (depending on the area of the country they live) will be paying a whopping $1.20 per gallon in taxes. That means if you have a vehicle that has a 20-gallon tank, when you fill up you will pay TWENTY-FOUR dollars in taxes alone...that's $24.00 per tank each time you fill up.
You will pay only eight dollars ($8.00) to profit the oil companies.
Thus, when you fill up with 20 gallons at a cost of $3.00 per gallon, you will pay a total of $60.00. Out of that 60 dollars you will pay 24 bucks in taxes. Out of that 60 dollars, 8 dollars will go to the oil companies.
Without the unreasonable taxes on gasoline, your bill at the pump for 20 gallons, even at 3 bucks per gallon would only be $36.00--THIRTY-SIX BUCKS for a full tank of gas at the 'whopping' price of 3 dollars per gallon.
Thus, my friends, if there were ever any doubt as to who is the real culprit that places such burdens on the backs of citizens, look no further than your government.
Thursday, March 20, 2008
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