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Tags: gas | taxes | oil | middle class

Give Gas Taxes Back to Oil Companies and Middle Class

Give Gas Taxes Back to Oil Companies and Middle Class

George Mentz By Monday, 16 March 2020 05:26 AM EDT Current | Bio | Archive

Quantitative easing (QE) is good for the markets and low Federal Reserve rates can help the economy, help business and assist people with credit card debt and other adjustable loans with lower payments.

However, the energy sector has recently been hurt by disputes offshore which affect the U.S. and our national security. While nobody wants to give anyone corporate welfare, the oil and gas industry is unique for several reasons:

  • Successful oil and gas companies employ millions of people who pay taxes, buy food, pay tuition etc. If they get laid off, public assistance will cost billions.
  • Successful oil, energy, and gas companies power hospitals, schools, supply chains, and transportation.
  • Successful oil and gas companies and energy production are a national security issue.
  • Oil and gas companies are one of the most taxed sectors in the world.

With gas and heating oil cheaper than it has been in years, the state and federal tax on a gallon of gas in almost 40% in some states. Maybe it is time for quantitative easing on the energy sector which affects inflation and costs for all citizens?

To illustrate, if you fill up your car with 15 gallons of gas at $2.50 per gallon, that would total about $38. Therefore, state and other taxes may take 20%-40% of your gas money.

The United States’ federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel. Also, many states have their own huge gas taxes. Pennsylvania's gas tax rate is highest at 58.7 cents per gallon, followed by California (55.22 cents per gallon) and Washington (49.4 cpg).The lowest gas tax rate is found in Alaska at 14.65 cents per gallon, followed by Missouri (17.35 cpg) and Mississippi (18.79).

So when you add your U.S. federal gas tax of 18 cents plus a Pennsylvania state tax of 0.58 cents, it equals a whopping 78 cents per gallon. You multiply that times 15 gallons per week and you have about $12 per week in taxes on individual drivers and $48-$100 per month in gasoline tax on a hard-working couple in the U.S.

With all of these issues at hand, I must say that the oil and gas industry and the utilities industry may be exploited by the government more than any other group except for casinos and doctors.

Quantitative Easing for Energy: How it Works

My idea is this: There are huge taxes in every state on oil and gas. We should rebate a portion of the tax back to the consumers and a separate tax portion back to the oil and gas companies. While QE means the government buys assets to add money to the economy, QE for fuel and energy would be releasing tax money to the consumers.

The U.S. customer pays about 76 cents per liter of gasoline. In contrast, a gallon of gasoline or petrol in many countries is double that amount due to high taxes and regulations.

For example: Here is a list of a few countries and their local cost of gasoline per liter *:

  1. Hong Kong $2.23 per liter
  2. Italy $1.73 per liter
  3. Germany $1.54 per liter.
  4. Ireland $1.62 per liter.
  5. France: $1.62 per liter which is more than double the U.S.
  6. Sweden $1.50 per liter
  7. Singapore $1.52 per liter
  8. Canada $.93 per liter.
  9. US, generally pays about 76 cents a liter.

Because of the tax and spend leaders in Congress, the new tax code keeps most W-2 workers from deducting or expensing gas and energy taxes. Thus, we should allow Americans to deduct or expense the gas tax or get a rebate. Further, if politicians over-regulate oil and gas exploration, they will reduce their fuel tax revenues for both states and the federal government while raising the cost of fuel and heating oil on American workers.

If you do the math, a married couple who are teachers earning $99,000 a year would be in a 17%-20% or higher tax bracket. To buy gasoline, the family must pay the 20% federal tax on income, and pay state income tax which can be up to 13%. After you pay the income tax of 20-33%, then you pay the gas tax which can be another 40% for each dollar. In summary, total gasoline tax on a worker can be 60%-70% or higher.

Furthermore, look at all of the other taxes that hit the middle-class workers. Take a look at your taxes and fees on your cell phone, internet data bill, airline tickets, electricity bill, internet bill, cable TV bill, gas and heating bill. On top of all of this, then there are city and state sales taxes that are apply to every dollar spent.

The real cost of gasoline in the U.S. is about $1 per gallon if you strip away the massive federal, state and city taxes.

Also, it is imperative that the U.S. be able to independently produce its: medicine, energy, food and any other key survival related commodities. However, we must have supply chains open and affordable goods and services that are not burdened with outrageous taxes and regulation which hurts working families with artificial inflation.

Targeted Fuel Tax Reform Would Accomplish 4 Key Things:

  1. Guarantee energy independence in the U.S.
  2. Stimulate spending by main street and middle class workers and the economy.
  3. Reduce artificial inflation.
  4. Reduce the tax load on the middle class, teachers, farmers and workers.

George Mentz JD MBA CWM Chartered Wealth Manager ® is a licensed attorney and CEO of GAFM ® global education, which is an ISO 29990 Certified professional development company operating in over 50 nations. Mentz is an award-winning author and advisory board member to several companies around the world in education, charities, and crypto currency.

© 2023 Newsmax Finance. All rights reserved.

Give Gas Taxes Back to Oil Companies and Middle Class
gas, taxes, oil, middle class
Monday, 16 March 2020 05:26 AM
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