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December 2008 – Gas Tax per Gallon

Randall Prince — Mon, 29 Dec 2008 22:03:24 +0000

A lot of people have been using the above graphic to show the current state of gas taxes and the fact that states are contemplating a tax hike in order to increase governmental revenues in the current economic environment. Though it’s been shown time and time again that people will use less of what they are taxed upon (and in turn, revenues will actually go down, not up), local, state and federal agencies continue to tax the average citizen instead of optimizing their budgets like any private organization. Looking at the above should be a reminder as to whom makes the most amount of money from gasoline. It’s not Exxon or Shell. It’s the state and federal government. Whereas the profit margin (on average) sits between 3-5%, the government makes almost 22% (in the lowest case) of the price of a gallon of gas (and mind you, they have done nothing like exploration, refining or transport to take that oil from the ground and turned it into something that will power your car).

I hope you will all remember this next time Congress starts to complain about windfall profit taxes and the greed of oil executives.

Gas Saving Tips on Guidespot

Will — Sun, 14 Sep 2008 04:13:55 +0000

We just created our first guide over at Guidespot.com. Help us grow this guide into a definitive resource for gas saving tips and improving the fuel efficiency of your car. It is open to the community of Guidespot members. So create an account and start contributing. If you create your own car related guide be sure to let us know so we can contribute to yours.

You Want People To Go Green? Tax ‘em.

Randall Prince — Fri, 15 Aug 2008 04:44:18 +0000

For some time in the US, cars that can’t achieve a certain level of have what’s called a gas guzzler tax. It’s a somewhat reasonable tax if you want people to think green. However, a small tax is a small price to pay when you’re dropping $100,000+ for a brand new Mercedes-Benz CL63 or a $250,000 Ferrari . For those countries who have yet to mobilize via cars like the USA (China for example), the government is able to impose slightly more draconian taxes without backlash from the general population. Though I can’t say I agree with the government dictating what people’s behavior should be, it’s a more than effective method to take the “green” road. Here’s an example of some of the “tax reform” levels Chinese car buyers will see:

Engines smaller or equal to 1.0l – 1%

Engines over 1.0l but less than 2.0l – 5%

Engines over 2.2l but less than 3.0l – 9%

Engines over 3.0l but less than 4.0l – 25%

Engines over 4.0l – 40%

While I applaud the Chinese for good intentions, you know what they say about good intentions. What about cars like the Chevy Corvette that gets mileage as good as any V6 sedan out there? What about engines that are turbo or supercharged? There is no final formula for the perfect way to tax cars. So, B+ for creative thinking and “good intentions”. F for execution. I just hope that American creativity and entrepreneurial spirt will yield a more reasonable solution to incentivizing small, efficient cars.

Source: China Car Times