6 Dollar gas = Empty Lineups?

[LBCrew]

Sorry to keep derailing this thread, but...

There are large scale "corporate farms," and there are small scale "family farms." And probably everything in between. The difference between the two is that it's almost impossible to operate the former without the use of a lot of heavy machinery, chemical pesticides/fungicides/herbicides/fertilizers, flood or spray irrigation, government subsidies... all of which are not sustainable, both environmentally and economically. Small scale farms are much more likely to be diversified, organic, and sustainable. Could these products cost more at the register? Most likely they will. But the benefits far outweigh the costs, IMO. In fact, if the produce you buy from the local farmer's market is fresher, it should have a longer shelf life, and that should help offset the slightly higher cost.

[Koki Barrels]

While some of the cost increase on food may be due to higher gas prices, it is also related to the worst drought we have had in 25 years. Many farmers lost a high percentage of crops this year due to the lack of rain, and scarcity def equals higher prices. Meat prices are expected to rise, also. And i just saw on the news the other day that the price of bacon is about to skyrocket.

Gas could be a million dollars a gallon and it still ain't gonna stop me from getting wet.

[757surfer]

i live two blocks from the beach now and i bike anyway soooooo.... ill be there

[cepriano]

gas prices are relatively cheap in america.it was way better 4 years ago when it was 1.19/gal.gas in belize is like 10.00/gal.if everybody in the usa went a week without gas the price would drop a lot...........biodeisal is the ****..shhhhhhhhhh dont tell anyone!!

[HD4]

A half block from the beach and my company pays for my gas so i got it covered

[ragdolling]

[QUOTE=zrich;141128


Profit volume is Meanwhile, Apple earns about $0.25 for every dollar of sales. Why doesn't anybody complain about their high profits?[/QUOTE]

Because the produces Apple produces are not something consumers and the economy essentially rely on to keep things running. Oil is arguably like a public utility. Iphones are not. Apples to oranges.

[zrich]

Because the produces Apple produces are not something consumers and the economy essentially rely on to keep things running. Oil is arguably like a public utility. Iphones are not. Apples to oranges.

True, but the point is still valid: the profit margins are not that high for oil companies. It's not like they're getting a barrell of oil out of the ground for a nickel and turning around and selling it for a dollar.

[Doug]

What? It's not even close to the biggest revenue source for the government (around $40B out of about $2 trillion). Individual income taxes account for nearly 50% of government revenue.



Profit volume is different than profit margin. Oil companies earn around $0.08 for every dollar of oil they sell. Does that seem extremely high? Fuel demand has increased which has increased oil companies' absolute profits (in $), but their margins are not that high. Meanwhile, Apple earns about $0.25 for every dollar of sales. Why doesn't anybody complain about their high profits?

Between the multi-billion dollar quarterly profits the oil companies are earning and the gov blowing billions of dollars in the Middle East (not because we’re interested in the fig trees) it seemed like a no brainer. Thanks for clarifying. If Income tax is first, what’s second, and so on?
Is 40B accurate or skewed? I’m thinking in terms of shipping costs going up because of fuel costs rising, resulting in the cost of each item shipped going up. If item prices go up, the tax dollars collected on each one of those items goes up too. With that in mind it would seem the gov is making substantial income on petrol long after it leaves the pump. How much income? Did they factor that in to the reported 40B?
We need to fuel our vehicles weekly and Iphones last us a year or two. I think it’s more noticeable when you get bent over a log on a weekly basis.

[Juliaep]

Big oil will do whatever it takes to squash alternative energy resources. I'd make a bet right now that gas prices will go down after the elections regardless of who wins. Anything to protect their profits.

[zrich]

Between the multi-billion dollar quarterly profits the oil companies are earning and the gov blowing billions of dollars in the Middle East (not because we’re interested in the fig trees) it seemed like a no brainer. Thanks for clarifying. If Income tax is first, what’s second, and so on? <br />Is 40B accurate or skewed? I’m thinking in terms of shipping costs going up because of fuel costs rising, resulting in the cost of each item shipped going up. If item prices go up, the tax dollars collected on each one of those items goes up too. With that in mind it would seem the gov is making substantial income on petrol long after it leaves the pump. How much income? Did they factor that in to the reported 40B?<br />We need to fuel our vehicles weekly and Iphones last us a year or two. I think it’s more noticeable when you get bent over a log on a weekly basis.

1. Income Tax - 42%
2. Payroll Tax (SS/Medicare) - 40%
3. Corporate Income Tax - 9%
4. Other - 6%
5. Excise Tax - 3%

Gas taxes are part of excise taxes. The federal government collected about $75B in excise taxes in 2010 and about half of it was from gas taxes. The states collect gas tax revenue too. The revenues are supposed to go to maintain the transportation infrastructure (bridges, highways, roads, etc.).

In terms of the implied taxes on everything else due to the rising costs due to higher fuel costs, that would be challenging to calculate and is not included in the $40B, but you're right, it exists. The federal tax is a straight per gallon tax not a percentage of cost tax. It is currently $0.184/gallon for gasoline and $0.244/gallon for diesel. So, rising fuel prices do not increase fuel tax revenue to the government.