What % of the cost of gas goes to the government in the form of tax?

Question

Are you happy about that ?

Do you believe that the government could or should reduce the taxation level in order to reduce the suffering of the people ?

Oil compny's post billions in profit per year - should they be forced to reduce their profit margins to only a few million per quarter in order to relieve the suffering of the people ?

Should the government make public the total amounts of revenue generated by gas tax with an explanation as to where they spent that income - esp given the current hardship of the people ?

Answer 1

Using government figures,    as of 2006  of every dollar that goes thru my hands,   88% goes to taxes, directly or indirctly.  12% goes towards the product I'm puchasing.

Answer 2

I have heard that $0.18 goes to the government while $.08 is big oils profit per gallon.....I am not sure of the accuracy of that but I am round about close

Answer 3

"For the first quarter of 2008, the average state gasoline tax is 28.6 cents per gallon, plus 18.4 cents per gallon federal tax making the total 47 cents per gallon.  For diesel, the average state tax is 29.2 cents per gallon plus an additional 24.4 cents per gallon federal tax making the total 53.6 cents per gallon."

Source: http://www.api.org/statistics/fueltaxes/...

So:

1 - Around 11.25% on average; some states are MUCH higher,

2 - Neither happy nor unhappy 'bout that,

3 - No, and for two reasons: a - it's unrealistic to eliminate the taxes and that would be the logical conclusion that would be demanded by the populist politicians once tax reductions were started; b - the taxation level as a percentage is lower as gas prices go higher and I don't think ~11% is unreasonable,

4 - No, unless you wish gasoline prices to go even higher, and

5 - They already report that data; you just have to go look it up.

Answer 4

18.4 cents per gallon goes to the federal. The state varies

http://www.gaspricewatch.com/usgastaxes....

h**l no I'm not happy about that. I understand that this money goes to pay for roads, and that's fine. But for the government to have the audacity to vilify an industry that contributes so much to our economy is just absurd. Demonizing "Big Oil" for having "obscene profits," and high prices - while failing to mention that the oil companies are only getting less than half of what government gets.

Answer 5

The Federal gas tax is 18.4 cents per gallon.   Each state charges a different amount.  Also, the station may pay a wholesale tax.  Also, some states charge sales tax on top of the gas tax.

I think the fed. gov't should drop the gas tax for a while.  

Drill Drill Drill

Answer 6

18.4 cents per gallon and states vary greatly

Oh they definitely should post it!  Here in California we keep passing stuff like the gas tax that's supposed to be earmarked specifically for road construction, but they spend it on welfare instead.

Answer 7

The "greedy" oil companies make less than 10% of their income for profit. I am in no favor of reducing their profit.

Answer 8

They take more than the oil companies.