Cornbread Maxwell wrote:You bring up a lot of important points in this thread mookie. Ima as capitalistic as the next American, but I also believe that there has been widespread abuses in pricing in this industry, and it needs to be investigated. Also - you make a great point about taxation, is taxation of gas a set rate per gallon, or is it based on a % of price - if the latter, how much extra surplus is that bringing in and where is that surplus going to?
I'm pretty sure that in Ontario the provincial tax is a percentage of total cost at the pump.
Somebody in this thread said that in the States that it is a fixed amount but somehow I doubt that.
I found this from a 2002 study:Link.
I don't know whether the 31% was on average what it worked out to or whether it was a set 31%.
Taxes - Taxes, including federal and local, account for about 31 percent of the total price of gas in the United States. Federal excise taxes are 18.4 cents per gallon, and state excise taxes average 20 cents per gallon. There may also be some additional state sales taxes, as well as local and city taxes. In Europe, gas prices are far higher than in America because taxes on gas are much higher. For example, gas prices in England have risen as high as $6 per gallon, with 78 percent of that going to taxes.
It seems as if the federal rate is a fixed amount per gallon but that State taxes are a percentage.