If we raise taxes on oil companies, will that help reduce the price of gasoline?

Question

I'm just guessing that they would pass it on to the consumers, but this is one of the Democrats grand plans to punish "Big Oil".
It amazes me how Democrats find a way to make higher taxes seem like a good thing to their constituents, (like raising taxes on wealthier citizens, even though they already pay the most taxes by far).

Answer 1

"Punish" big oil? For doing what exactly? Here are the average profit percentage of various products:

Manufacturing = 8.5%
Oil and gas = 9.5%
Computers = 11.5%
Chemicals = 13.5%
Electrical = 14%
Beverage & Tobacco = 19.6%
Pharmexeuticals & Medicines = 21%

Bottom line is that we all need gas, we all use gas, and oil companies have a product that we need and use! Simple as that! And after over 30 independent investigations over the last 20 years into oil price fixing, they all came up clean.

So again I ask...........why is it that Americans don't have the money to spend $3.25 on gas, but they have PLENTY of money for Ipods, Itunes, lap tops, razor phones, blackberries, designer jeans, Playstation III's, fast food, cigarettes, alcohol, pay per view sporting events, and entry fees into nightclubs?

Answer 2

The only thing that will reduce the price of gasoline is to shift the nexus of the supply and demand curves. That means we either lower demand or increase supply. Given the nature of our economy and the sub-urban sprawl of most cities, decreasing demand will require a massive, MASSIVE investment in all new mass transit infrastructure. Sadly, while this part of the answer is beneficial for everyone no one really wants to spend the money to make it happen.

That leaves increasing the supply. Since our refineries are already operating at capacity (give or take 10% on a site by site basis), that means we need to build more refineries. Those facilities are, by definition, bad for the local environment.

So we have a choice to make as Americans: Do we want to do our part to curb demand, do we want to accept the consequences of increased supply, or do we want to just keep paying the high prices and griping about it?

Answer 3

No, corporations do not pay taxes! It is just another item on the balance sheet. Raise Taxes, raise prices. Their net income will be the same, about 8-10 cents on a gallon. The Government on the other hand taxes consumers to the tune of 45-50 cents a gallon.

Answer 4

Why would a company not pass this cost on to its customers. The only way a company does not pass the cost of a tax on if its competitors do no, well since there are only a few oil companies I really do not see any saying I want to eat this cost.

Answer 5

No, ot will cause the prices to go up. Oil is a commodity, its price is determined by the supply and demand.

Want the price of gas to go down? Find and drill for more of it. Follow the French model for electrical generation, that is build more nuclear reactors (France gets over 70% of her electricity from nuclear power) and generally use less oil.

Increase the supply and lower the demand and you will have cheaper gas.

Raising taxes seldom helps anything....but I know you knew that.........

Answer 6

Actually, the tax burdern falls more on those making between $34,500 per year and $200,000 than anyone else. In fact, the federal tax code has become so skewed in favor of investors over workers that personal taxes on earnings are now two-and-a-half times greater than personal taxes on
investment income.“The public needs to understand,” McIntyre said, “that the taxes well-off people aren’t
paying on their investment income translate directly into a combination of higher taxes and reduced public services for the vast majority of Americans.”

Answer 7

If Democrats wanted to reduce inflation then drop the federal tax on fuel...make it cheaper at the pump...it will cost less to ship EVERYTHING that consumers purchase and result in lower prices across the board...if you raise taxes on ANYTHING then the cost is passed down to the consumer thus raising prices...

Answer 8

persist with that little bit of spectacular Democrat good judgment and you attain the tip that the backside cost could properly be complete with the help of taxing the oil businesses one hundred% of their earnings. Excuse me yet something does not upload up there.... yet having suggested that liberals time and time returned demonstrate little expertise approximately economics.

Answer 9

No such luck.

A tax increase only benefits the government.

It will raise the price. The oil companies will still make their profits. We will still pay for it all.

Answer 10

Raise taxes = raise prices every single time.