Gas & oil companies make about a 7 cent per gallon profit on every gallon of gas sold while the state and federal government make an average of about a 49.5 cent per gallon profit or 12% (depending on the state).
The profits for gas & oil companies does not include the profits from refining (about 29.6 cents per gallon).
Gas stations make almost nothing and need to make their money from car repairs and convenience shops.
The government is not satisfied with their take of the profits for doing nothing.
The states governors are running out of cash and are heading back to the gasoline tax kitty. Many plan to raise the gas taxes to cover transportation costs such as road repair but the money will continue to be used for other government purposes.
The federal government will be back at the trough soon as well.
It is a regressive tax, meaning everyone gets hit the same. When this doesn’t work, they will go to the “tax by the miles you drive” tax.
Ben Husch, a National Conference of State Legislatures director, is calling it a “bold action.” Raising taxes is not only “revenue” and an “investment,” it can now be a “bold action.”
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