May 12, 2011: This morning's news presents us with visions of energy CEOs called in front of Congress due to high gasoline prices.
Energy companies make a profit of 7 - 10 cents per gallon of gasoline sold. Those pennies add up, that's a lot of money. These companies are in the business of making money; by that measure they're successful.
The federal government's profit per gallon of gasoline sold is 18.4 cents. This is the amount each consumer of gasoline pays in federal gas taxes for each gallon of gasoline we buy (states and some cities then add-on as much as 40 more cents per gallon).
It's disingenuous of Congress to attack energy companies for high gas prices when those companies receive exactly one-half of what Congress takes per gallon of gasoline sold.
A consumer willingly exchanges 7-10 cents in profit to the energy companies to buy processed gasoline. The federal government simply takes 18.4 cents per gallon consumer by fiat.
Energy companies will likely make record profits this year. Shareholders of these companies will see their 401Ks increase, employees of these companies will be better consumers as they feel more secure in their employment and these companies will be subject to more taxes as they create more profit - this is capitalism.
The objective of energy companies is to make a profit. Each of these companies is legally creating profit within the system that Congress and the President created. Congress' actions make one believe their objective is taxation, as Congress is unwilling to even debate reducing the 18.4 cents per gallon in tax.
Were Congress (and the President) sincerely concerned about the price of gasoline they would reduce the 18.4 cents per gallon of tax they’re taking from us each time we buy gasoline. That’s $2.76 per fifteen- gallon fill up.
Instead Congress and the President are attacking energy companies for making too much of a profit? The single largest industry in our nation is energy. This industry creates more jobs, more value and more economic growth than any other industry. Yet, all our leaders want to do is attack this engine of job creation.
Attack America’s largest employer for high gasoline prices while ignoring Congress and the President’s responsibility for high gasoline due to an 18 cent per gallon federal tax.
Perhaps Congress and the President's true objective is to simply divert public scrutiny over high prices of gasoline from themselves and on to the shoulders of the largest industry in America - energy.
Another day, another likely example of government's