i stayed up all night having sex with a very hot chica. im now studying for a physics exam. but im still reading your post buddy happy friday
****! But I was more trying to find out when in the lifecycle of a barrel of oil would it be taxed. Doesn't really matter though I guess since it ain't gonna happen. Was just curious.
How would that not be inflationary, I'm not sure oil was even past $30 in the early 2000s. Unless you let producers and refiners integrate with services companies and pipelines while doing away with any discriminatory pricing regulations.
Oil has more applications than just the manufacture of gasoline, and each have their own price elasticity. Anyway, I have no idea if the reduction in demand would be big or small. Let us say it would put downward pressure on demand.
To bring this discussion closer to home, the last time Texas raised its state gasoline tax was in 1991, 25 years ago, and with the rate of inflation since then the increase amounts to 10-12 cents today. In the meantime, the population of Texas has increased by over 10 million, with a huge increase in the number of vehicles using Texas roads, those roads and bridges busy crumbling. While the Lege passed a constitutional amendment that was approved to actually use all the money raised by that tax for roads (75%) and schools (25%), as was originally intended until Republicans decided to raid those funds for other purposes, so they could avoid "raising taxes," shafting the Highway Department and our public schools in the process, it at least helps, even if it is far too little. It's past time for Texas to raise the gasoline tax, and I have no problem with the Federal government putting an additional tax on barrels of imported oil if that money is used towards keeping our national highway system (thanks, Ike!) from falling apart. Not only is this critical for our transportation system and our economy, but it's also critical for our national defense (thanks, Ike! It's why he wanted it built in the first place). Oh, and the less fortunate use those roads, as well as those of us who are better off.
My issue is the Oil companies won't pass on this cost to the consumers. They will pass on double or triple the cost to consumers because of artificial administration related costs/services dealing with this new tax.
Kind of comical seeing some of our resident "flat taxers" bemoaning a regressive tax. Cognitive dissonance for the win.
Basically a punch in the nose to Canada whom we import the most oil from. Boon for US producers. I'm assuming most of the super major oil companies will just switch to import less oil to the US when they can sell it for more (without a $10 penalty) to other countries. Cost of domestic oil will increase to assist with the supply. Also this would be a nightmare since most oil companies trade oil as a global commodity. You'd have to tax on delivery to US shores, and by then, the oil isn't even owned by the original oil company anymore. I'd suspect that the administrative costs to figure out who owes the $10 and when would be more than $10 a barrel. Since the tax is only on imports, the oil market would adjust to import less and produce more in the US, which wouldn't necessarily be a bad thing, but the revenue raised would me much less than projected and would put a large burden on companies to track. Remember, not every oil company is a BP or Exxon...significant increases on administrative costs to a lot of companies is a real thing to a lot of smaller companies. Additionally, the oil industry is already taxed hugely (cumulatively the most taxed industry on earth). Taxes and fees to various governments are on every part of the fuel value chain. Mostly the taxes are hidden because its not a "federal IRS income tax". Taxes on permits, taxes to drill, taxes at extraction, taxes on shipping, taxes on refining, fees up and down to the EPA, Railroad Commissions, States, Counties, Cities, Municipalities, Real Estate Fees/taxes, Offshore Drilling (the US gets something like 15% off the top off all offshore US oil), Excise taxes up the wazoo, etc.
Like the dissonance of mothballing a pipeline project after five years and then raising taxes on the same commodity?
There was a Chronicle opinion article about this. http://www.houstonchronicle.com/opi....php?t=e57c1d4f77438d9cbb&cmpid=email-premium Basically a UH Energy Professor suggests switching it to a $10 Oil import tariff. I think I could get behind that, it would help shore up the price domestically and helps with raising money for the government which then can be used to fund alternative energy research if they want. Win-Win. Apparently we had an oil import tariff up to 1974 when the OPEC began the oil embargo so it is not unprecedented.
