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FELLOW
TRAVELER |
The
Real Price Gougers
by Ray Haynes [Assemblyman]
5/5/06 |
Do you want
to reduce the price of gasoline by almost 60 cents a gallon
immediately?
Get the
real price gougers. They take nearly 60 cents of every $3.00
gallon of gas. They should pay the windfall profits tax. They
should be investigated. What are they doing with this money?
How is it being spent? How are they ripping off the gasoline
consumer?
They manipulate
the market in oil. They withhold large amounts of the oil supply
from the public, artificially reducing the supply so that the
price of gasoline continually goes up. They prohibit the refining
of oil, and, in fact, add useless, polluting chemicals to gasoline
(claiming that it makes the air cleaner), which also artificially
increases the price of gasoline. In fact, they profit from
their activities at the expense of consumers everywhere. They
gouge consumers, take home exorbitant salaries from their price
gouging practices, and do absolutely nothing for the gas consuming
public. They take the food from the table of the hardworking
people of this state and country to satisfy their appetite
for the big bucks they make from big oil.
Contributor
Ray Haynes
Mr.
Haynes is an Assembly member representing Riverside
and Temecula. He serves on the Appropriations and
Budget Committees. [go to Assembly Member Haynes website
at California Assembly][go to Haynes index] |
How have these gougers avoided investigation so long? They blame
others for the high price of gasoline. They use their public
relations mechanisms to manipulate the press into shifting the
blame from themselves to powerless scapegoats, and keep the flow
of big bucks headed into their pockets from the pockets of working
families.
Who are these
gougers? They are the politicians and bureaucrats in the state
and federal
governments. Federal taxes take 18.4
cents of every gallon of gas. State gas tax is 18 cents a gallon.
The state sales tax adds 22 cents to every $3.00 gallon of gas.
Of course, the amount of sales tax goes up as the price of gas
increases. Add these together, and the consumer pays 58.4 cents
to the government for every $3.00 gallon of gas. These taxes
don’t include the income taxes paid by oil companies, which
last year was over $108 billion to the federal government alone.
And what does the consumer get for this price gouging? Nothing.
Government tells us they collect the tax to build roads and freeways,
yet the freeways are overcrowded and the roads are crumbling.
All the consumer gets is bigger government, and useless studies.
Lots of government bureaucrats make six figure incomes from the
gas tax to do absolutely nothing. Billions of dollars a year
flow to these useless government executives and politicians,
and they use these billions to line their own pockets and increase
their power.
In addition,
these same politicians purposefully place some oil of limits,
artificially
limiting the supply, increasing the
price of gasoline, and shifting more of our national wealth to
the terrorist nations in the Middle East. The United States has
over 200 years of known oil reserves that no one can touch because
the government won’t let them. Add to this the fact that
the government won’t let anyone expand the refining capacity
in this country, and mandates the inclusion of artificial chemicals
to gasoline that can pollute our water, and the result is constantly-rising
gas prices at the pump.
On average, only 30 cents of every gallon of gas flows to the
oil companies, yet politicians, and their allies in the press,
accuse oil executives of gouging consumers. One politician in
Sacramento wanted to assess a windfall profits tax on these oil
companies this week, claiming that oil companies were ripping
off consumers. This same politician did not once mention that
government makes double the amount that oil companies make off
the same gallon of gas on sales and gas taxes alone. The press
dutifully reported his scapegoat tactics, never once investigating
him for his consumer rip off.
Don’t
be fooled by the rhetoric. The real price gouger in the oil
industry
is government. -CRO-
Mr.
Haynes is a California Assemblyman representing Riverside
and Temecula and freuent contributor to CaliforniaRepublic.org.
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