Why can the Federal Government make 18.4 cents per gallon and Exxon cannot

@gewcew23 (8010)
United States
May 3, 2008 12:24pm CST
The Federal Government does not make one gallon of gas. The Federal Government did not find one gallon of gas. The Federal Government did not build one oil refinery. The Federal Government did not invest not one dime for oil. So why does the Federal government have the right to make more money off of every gallon of gas sold here in the U.S.A than any of the Oil companies? Californian pay 62.8 cents in taxes Connecticutians pay 62.3 New Yorkers pay 59.3 The Average is 47 cents in taxes Name one of those Evil Oil Companies that make as much money as any State or the Federal government of of one gallon of gas?
1 person likes this
3 responses
• United States
3 May 08
1. Oil companies make a bit more than 18 cents/gallon, actually they make about 31 cents, net. Your federal gasoline tax pays for all the Interstate freeways, repairs, improvements, etc. Same as federal tire excise tax. I much prefer this, (as the more you drive and use the highways...the more you contribute to their maintenance,) to the alternative...tax the h*ll out of everyone even if they don't drive, which is the usual means of taxing. For more information: Federal Highway Administration.gov U.S. Department of Transportation.gov
2 people like this
@anniepa (27488)
• United States
3 May 08
I really do understand where you're coming from here and I have no doubt our tax dollars in this instance are mismanaged just as they are in every other instance but, for the sake of discussion I have to say Exxon (or Shell or any of the other oil companies) do not repair or build a single bridge or highway. That's the catch-22 here, we all want good and SAFE roads and bridges, we don't want to have added repairs become necessary to our vehicles because of potholes and the like and we certainly don't want our bridges collapsing but we understandably don't want to pay exorbitant taxes. In my state of PA there's been a big battle going on over putting tolls on I-80 or selling off our Turnpike and most people are against both. Unfortunately, the only other options are to raise revenue another way, either through higher taxes somewhere or increased license and registration fees OR let our roads and bridges fall apart. It's a tough one and I sure don't pretend to know what the best answer is. I sure want to save money but more than that I want my loved ones to be safe. Annie
1 person likes this
@gewcew23 (8010)
• United States
3 May 08
I understand that road have to be repaired. The problem I have seen is that politicians debating the profits from oil companies when the Feds make about the same amount of money off of every gallon.
1 person likes this
@coffeebreak (17811)
• United States
4 May 08
If they'd just spend that money here in the USA, I don't think many would mind so much, but so much of our "tax" dollars go over seas to other countries I just get so angry when I hear about those things! Bush just recently (I read) approved a bill to send something like $72 million dollars to over seas countries for food aid.... we are struggling here with food prices rising cause of the high gas prices and trucks can't afford to haul the food. Bush says "we are a country of caring people"...yeah, we are, but why do you have to make us hungry caring people? So much of that could help us here in the USA - why do we always have to send it elsewhere? I just hate that!
1 person likes this