Opponents of increasing the tax on gasoline argue that the big oil companies?

Question

just pass the tax along to the consumers. Do you agree or disagree? Explain your answer.

Answer 1

There has never been a business tax -including corporate income tax- in the history of mankind that has not been passed along to the consumer. It simply cannot exist any other way. Businesses collect money from you and than give it to the government. Since they get ALL their money from consumers (revenue), all their expenses (taxes) are paid by consumers.

If you gave your child an allowance and your child bought as toy with it, who really paid for the toy? Not your child. Business taxes are no different.
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Answer 2

Tax is paid at the pump. The tax would not directly impact the profits of oil companies. Indirectly, however it should. Consumers would concievably consume less gas if they had to pay $3.00/gallon than if they had to pay $1.00/gallon. This would mean that the oil companies would do less volume.
Increasing a tax on gasoline would do a couple of things. The bad thing is that it would create hardship for lower income earners, and have an inflationary impact on prices of most items. The good thing is that it would have the impact of making alternative fuels more viable by being more price competitive, and it would also encourage conservation.

Answer 3

Well there's all ready about $0.36 to $0.46 tax on gasoline right now. And its collected by the people who sell gas and figured right into the price. Some pumps have this listed on them but for the most part the consumer isn't aware of the tax. Why would an additional tax on gasoline be any different.

People need to get there heads screwed on straight. Employers, and Companies do not pay taxes. Consumers pay all the taxes. Employers, companies and corporations just collect the taxes from their customers.

Answer 4

Huh? Of course it gets passed on to the consumer. That's what the gasoline tax is -- it is a sales tax added to the price of gas at the retail pump so that it is paid right then and there by consumers -- that's not a debatable point.

Answer 5

Just one point of contention--one answer said the increased gas tax would be inflationary in a lot of products. In fact, it would increase the cost of producing those products, but that is not what determines inflation. Additional money in the economy would be necessary for inflation to occur. Aside from that, consumers would either purchase less of that product if the price was raised, the producer would earn less profit because he could not raise the price, or some of both. Or, the consumer could reduce spending elsewhere to compensate for the increase in price here.

Answer 6

Yes, that's true. But what's also true is that they pay taxes too. ExxonMobil paid about $30 billion in taxes last year. Over 1% of the Federal budget expense.

Answer 7

The whole point of the tax is to raise prices at the pump and discourage consumption of oil. Is there anyone even claiming that it won't.