ChrisTruitt.com
>
Home Page
>Add to Favorites
>Weekly Column
>Column Archives
>Action Points
>Chris On...
>Contact Info
>Gear Shop
>Search

Politics
>Reps vs. Dems
>
Republican Party
>Democratic Party
>"Third" Parties

Features
>9/11 Content
>Organ Donation
>Find Local Sex
>Offenders

>Chris's Favs

Documents
>Documents Home
>The Constitution
>First Amendment
>Bill of Rights
>(Amendments 1-10)

>Amendments 11-27
>Declaration of
>Independence

>Articles of
>Confederation


 

 

 

 

Gas Prices Reach Record Levels
And so do big oil profits
4/28/2006
Contact your legislators and tell them to quit pandering to big oil by offering various taxpayer funded schemes to take the 'hurt' out of buying gas and make them drop their profits so we can see a drop in prices at the pump.

So much talk has been going on about gas prices that I couldn't help but do another column on them. My first column, Bend Over at the Pumps, summed up what the gas companies are really up to; artificially keeping the supply of gasoline low in order to keep the prices high.

This artificially high price isn't being created by the local gas station. Local stations buy their gas in bulk from big oil company terminals and it's the price at the terminals that determines what you and I pay for a gallon of gas - at least in part.

A good portion of the price is comprised of federal and state gas taxes. Here in Wisconsin, 31.1 cents of every gallon of that gas you pay for goes to state government coffers (25.1 cents per gallon for diesel) according to WisconsinGasPrices.com. In fact, Wisconsin is the highest 'gas tax' state in the nation. Number two is Washington at 28 cents per gallon followed by number three Montana at 27.75 cents per gallon. Add to that the federal gas tax of 18.4 cents per gallon and it's easy to see how quickly the taxes add up and contribute to the problem. In Wisconsin, almost 50 cents per gallon goes to. When I fill my 20 gallon tank at the local Stop-N-Go for a total of about $57.00, $10.00 of that goes right to the government.

However the balance, $47.00, goes right into the bank of the big oil companies. They own their own exploration companies, drilling platforms, R&D divisions, refineries, distribution systems and even the local station down the street. They control the entire chain from the beginning to the end and from the top to the bottom. While the local gas station may not be responsible for the price of a gallon of gas, the company that owns them is.

Take Chevron for example. On April 28th they announced a 1st quarter net income of $4 billion, up 45% from the same time last year. How would you like a 45% annual raise? Just to put it into perspective, the typical family car costs $25,000.00. A 45% price hike would bring that to $36,250.00. An American home valued at $200,000 would jump in price to $290,000.00. An average two-income American family would see their annual gross increase from $100,000 to $145,000.00. How's that for a comparison?

Yet again I find myself at odds with the Republicans in DC. While some are proposing a $100 gas credit to low and middle income families others are proposing a 'vacation' from federal gas tax for the summer.

The problem with these proposals is that they accomplish nothing! They're not holding big oil's feet to the fire! Quite the contrary, they're allowing big oil to continue to take advantage of John and Jane Gasbuyer by essentially subsidizing gas prices with tax dollars. John and Jane may not be paying as high a fee at the pump, but they will undoubtedly have to make up the difference in another tax of one form or another and all the while big oil still makes their billions and billions in profit.

And don't forget for one minute that it's not just Middle America that is feeling the pinch. For many on fixed income, it comes down to choosing between paying for food and medication or paying for the gas they need to drive their car to the store to get the food and medication.

What needs to happen is really quite simple. We need to enact legislation that regulates the price of gas, period. Whether we use a Windfall Profits approach or gas price cap, we need something to force big oil to stop their horrible practices of price gouging.

The world is all over the Bush administration for using terror to justify everything from the war in Iraq to the Patriot act - but guess what? Big oil is doing the same thing and nobody is saying a word! They're using the excuse of natural disasters or the war in Iraq as the reason for higher prices at the pump but they're reaping record profits! Why hasn't anyone questioned big oil about this and forced them to own up to the fact that they're using similar tactics to take advantage of the American people?

Here's the reason - big oil contributes to campaigns, pure and simple. America follows the Golden Rule (those that have the gold rule) and big oil most certainly has the gold.

You need to contact your legislators and tell them to quit pandering to big oil by offering various taxpayer funded schemes to take the 'hurt' out of buying gas and make them drop their profits so we can see a drop in prices at the pump.

Contact Us | Privacy Statement | Copyright
<Design.By="EdgeOnline ">
www.EdgeOnline.biz/design