Posted on 09/14/2006 9:28:58 AM PDT by Uncledave
Need a good source for 55 gallon drums.
With rare exceptions, gasoline excise taxes are flat-rate, not percentage. The Feds, and almost all states, couldn't care less, in a taxing sense, whether unleaded is $0.75 or $2.75 -- they confiscate the same amount in taxes in either case.
I won't hold my breath. I'll be surprised if gas actually drops to the media prediction of $2/gallon by Thanksgiving, although any drop in price helps boost Republican candidates.
Bulk gasoline is up one cent again today. At 1.56-1.60 it is hard to see how even wholesale gasoline will reach $1.15 and retail cannot reach $1.15 unless we annex Mexico.
While gasolne is not dropping in price any farther the past couple days, natural gas is at $5, down about 10% today alone. Gold is down almost $6 and I really don't see how anybody but gold brokers and golf miners can have made money in gold the past three months.
Opposite would happen. Gas taxes are based on "pennies per gallon" and not as a % of the current price of gas. So the amount of taxes collected per gallon are independent of the price per gallon. That being said, lower gas prices will encourage more driving, which will result in more gallons being sold, so more gas tax revenue will be collected.
California charges sales tax on top of it too...
OPEC has increased capacity since then. It is very difficult to get accurate numbers but drilling and exploration did not stop for OPEC during this time period, although it did reduce for a time period and is going strong today.
2. China the US and India demanded more oil.
Agreed, Asia's poor economy of the time was the main reason behind the oil price drop of 1998~99. China did manage to use less oil in 2005 than they did in 2004 but I do not see them keeping this trend.
3. Russia agreed to limit production in order to increase price.
There has been a lot of investment in Russian oil infrastructure since them. I honestly do not see them producing less so other countries could benefit.
4. Q8, SA and the other OPEC Doves began investing in the US economy and thus does not want to see the US economy fall.
I agree it is in everyone's interest for stable, reasonable growth and most will acknowledge that. But historically, only Saudi Arabia has been willing to make noticeable decreases to production and the market is to big for them to significantly change it. I honestly hope you are correct, but I doubt this industry will ever stop going through the boom and bust cycles.
Thanks for the actual discussion and thought out points. We could use more of that here on FR. Of course it is still better here than anywhere else I've found.
You're entitled to your own opinions; you're not entitled to your own facts. If anything the government has lost money in the price runup; taxes are per-gallon, not per-dollar. You can stand by your comments all you want; they still don't make sense.
that does pretty much sum it up
Sorry doc, not here in California, it is 18% and, depending on where you fill up, a sales tax of 8.25 on top.
That is why I say when they based on a percent of the sale, they will not give up the revenue.
Gas taxes are on a per gallon basis, not as a fraction of the sales price, like general sales taxes. The lower the price goes, the more we will buy. Supply and demand. The more we buy, the *more* taxes the government collects.
Facts (not differences of opinion) are pesky little things, aren't they.
Yea, they are aren't they...
From the California Energy Commissions page:
Taxes for gasoline in California are: 18.4 cents/gallon for federal excise taxes; 18 cents/gallon for state excise taxes; and local and state sales taxes. Sales taxes vary depending on the city and county you may be in...but on average the sales tax, roughly 8 percent, adds between 16 and 25 cents to a gallon of gasoline, depending on the local rate and the final price of the gasoline.
Open mouth... Insert foot...
BUSH'S FAULT!
Right?
Sounds good to me. Good thing I didn't jump on the oil stocks bandwagon...
Do you believe the government of California is going to control global oil prices?
See #55
This is what is commonly known as the second leg of a bull market. The first leg is a ramp in the value of commodities. Next comes the energy price abatement relief bull. That's the one that'll really rock your boat. Fun times. Cheap trips to the beach and such. When tech shares are flying you'll know it's time go to cash or rotate back to (what will then be) undervalued cigarette and food stocks. The fed is looking pretty good right here.
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