Gasoline Taxes

Written By: Rural
Date: 2005-08-16 07:34:00
<a href="/article/73418519-gasoline-taxes">Article Link</a>

The federal excise tax on gas is 15 cents a litre. The provinces have varying gas tax rates, but the provincial average is 14.9 cents a litre. Combined, that's about half of what Canadians pay for regular gas.

While some people see lowering this tax as an easy way to cut their total cost, Bennett argues governments should consider raising taxes and use the extra money to fund research on alternative fuels and transportation.

'The problem is taxes on gas are not dedicated to a real use (such as) better public transportation, health,' he says. 'We need to raise the price of fuel to pay for the cost of damage they've done.'

More at <a href="http://temagami.carleton.ca/jmc/cnews/29092000/n6p.htm">http://temagami.carleton.ca/jmc/cnews/29092000/n6p.htm</a>

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Don't like 99.9 cent gasoline? BLAME THE GOVERNMENT

Gas tax facts:
- Of the $4.5-billion collected in federal gasoline and diesel taxes in 2004-2005, Ottawa returned a paltry 7.2% or $324-million back in provincial transfers for road and highway development. In addition, Ottawa collected $1.198-billion in gasoline GST revenues.

From May 2004 to April 2005 the average cost of a litre of gasoline paid by Canadian motorists was approximately 84 cents. Taxes account for an average 38% of the pump price.

- GST is charged on the full pump price, gasoline taxes included. It is a tax on tax. For every 10 cent increase in the price of gasoline, Ottawa's GST revenues rise by $175-million.

- As a deficit reduction measure in 1995, Ottawa increased the federal gasoline tax from 8.5 to 10 cents per litre. The deficit was vanquished seven years ago, but the tax remains.

'What stings most for taxpayers is that the money siphoned out of our wallets doesn't even go to fixing our roads and bridges,' added MacLean. 'If Canadians want reasonable gas prices, we should all demand government stop stealing our gas money.'

From <a href="http://www.taxpayer.com/main/news.php?news_id=2062">http://www.taxpayer.com/main/news.php?news_id=2062</a>

(note to editors - I have tried to remove most of the errors introduced when cutting and pasting punctuation, particularly double quotes, but have not got them all!)

(Note to Rural: Thanks for the effort, but that's what we're here for!

[Proofreader's note: this article was edited for spelling and typos on August 16, 2005]

It makes very little difference where the gas tax money ends up, as long as it is spent in Canada for the welfare of Canadians. The deficit could be erased in 6 months by borrowing from the Bank of Canada interest free and paying out the commercial lenders, where the money shouldn't have been borrowed in the first place. Only stupid people and ideologically handicapped politicians would borrow their own money and then pay interest on it.

I find it remarkable that all the news items we read and see in our controlled media on the gas prices is concentrated on the reduction of taxes, instead of the obscene profits taken in by the oil companies. In the good old days much of that would have come back to the public in increased taxes, now the whole caboodle is going down the drain and used to take more control of the world and enslave more.

Has the public been brainwashed to such extent that they can't see open theft staring in their faces ? Ed Deak, Big Lake, BC .

Yes Ed,the public is totally brainwashed.Totally.Want to pay less gas tax,simple don`t drive as much.Get a smaller car.But good god almighty the ding dong public would never do that.Gotta have that huge SUV,and drive here,there,everywhere like a chicken with no head so they can buy,buy,buy and then complain about high gas prices.
DING DONG:Avon Calling.
Hello!Hello...anybody home?

"It makes very little difference where the gas tax money ends up, as long as it is spent in Canada for the welfare of Canadians."

Unfortunately once in our governments hands we probably receive less than 50c on the dollar for our money. Between government waste, paying the bureaucrats to collect, mismanage and give our money to consultants, pay the lawyers for all the inquiries and the like, I sometimes doubt that we even get that much out of it. If its still in my pocket I can use it more productively. Cynical, you'd better believe it!

"I find it remarkable that all the news items we read and see in our controlled
obscene profits taken in by the oil companies. "

That is true, I really don't know what percentage profit for big oil there is in a liter of fuel or what the true cost of fuel is FOB the refinery. I just think that the governments grab of 40% is a little much. What really gets my goat is this:-

"GST is charged on the full pump price, gasoline taxes included. It is a tax on
tax. For every 10 cent increase in the price of gasoline, Ottawa';s GST revenues
rise by $175-million."

I have a real problem with GST (and PST) generally, in that is added at the consumer level after all the manufactures, wholesales, retailers etc ect have all added their handling costs and mark up. Given the obscene markup at some of these levels many goods are probably taxed at 50% or more of their manufacturing costs. When applied to the ever increasing energy retail prices (gas, oil and hydro) it adds to the great number of families that struggle to make ends meet despite frugal living. They haven't yet found a way to put GST on the value of the fuelwood taken from my own bush (give them time!) but if the old bones don't get enough out in the fall and I have to buy some................................?

As an aside, a recent hydro bill (rural Ontario) was less than $50 for hydro used, but by the time delivery costs, debt repayment, regulatory charges had been added and the of course GST on everything it was more than double!!

"Want to pay less gas tax, simple don`t drive as much. Get a smaller car."

Done that, out here in rural Canada we have no choice but to drive everywhere, there is no other choice, there is no public transportation. No car - No job! In most cases there is only very limited public transportation between nearby towns or to the "big city", cant even push to get those trains back cause they have tore up the tracks and sold the right of ways. (Very short sighted in my view) Instead we have a never ending flow of diesel trucks filling our highways and spewing pollutants whilst burning that highly taxed fuel.

Now that the cost of gas is over $1.00 across most of Canada (up about 15c in the last couple of months around here) many of us have already seen the direct impact to our wallets, with surcharges already in place with airlines and many trucking companies it will only be a matter of time before we have to dig deeper for everything from groceries to garbage disposal. Gas prices always follow the price of a barrel of oil (or the price of the other companies gas!) which seems to be an artificial price affected more by political situations (created by the largest user of oil in the world?) than supply and demand...........................but that's another whole discussion!

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When you are up to your ass in alligators it is difficult to remember that the initial objective was to drain the swamp

"That is true, I really don't know what percentage profit for big oil there is in a liter of fuel or what the true cost of fuel is FOB the refinery."

It goes something like this: $5 a barrell to the government, plus pumping costs. Call it $8 total. Then they sell it to the refinery - themselves - for whatever they want to. Then they refine it; refining costs, call it $5 a barrell. Then sell a barrel of refined gas to us (IIRC 1 barrell = 162l) at market price+taxes. Any wonder why most oil companies are up 30% - 50% profit, this quarter alone?

Here's a thought. High gas prices affect the economy adversley to some extent. Items that must be shipped by truck must reflect higher fuel prices in their selling price. Thereby, the economy slows a little. Wouldn't reducing taxes on pump gas still put the government in large surplus territory, and have the effect of stimulating the economy some?

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"If you must kill a man, it costs you nothing to be polite about it." Winston Churchill

There are other costs as well — exploration, marketing, insurance, wages, salaries, golden parachutes … Complicating the current cost of sweet crude futures (at least on this side of the border) is the near full-tilt utilisation of refineries and many pipelines — when a refinery or pipeline is down for maintenance, pump prices can register additional regional spikes. Californians usually pay around 0.40 USD more per Queen Anne’s gallon (roughly 0.13 CAD per litre) at the pump than other Americans because California-spec gasoline isn’t mandated in other jurisdictions, which renders them even more vulnerable to production problems. I think that the petrobarrel is 42 anniegallons, which would make it just shy of 159 litres.--- [The people] will forget themselves, but in the sole faculty of making money, and will never think of uniting to effect a due respect for their rights.

What about reducing the tax at the pump, but at the same time eliminate the special subsidies, massive tax breaks and way-underpriced drilling rights? The high gas tax gives the producers a massive political lever.

A more progressive tax would work against vehicle size, not gasoline, throttling poor second order efficency (useful work produced per unit of energy consumed), not first (theoretical work per unit of energy consumed).

Every quarter, Oil company profits increase and yet the consumer blames the Governments for the increase of fuel costs. Tax's are about all Canadians get from selling their oil. Oil companies are going to be richer then they ever have. Even docile American refineries are once again starting up.

Profit is profit. Oil companies are able to pay high wages and bonus's prior to profits. Oil companies are not suffering. There are people who make a living by burning fuel. Truckers can get the GST accredited to their income tax bill but cannot make up for the profits gained by the oil companies.

Perhaps it would be better to collect all taxes and royalties at the point when the oil comes out of the ground instead of at the gas pump. These costs would eventually get through the system to the consumer but it would be collected from all the oil extracted, not just the 50% of oil that ends up as gasoline at Canadian pumps. Just increase the initial royalties on crude oil to cover what is now being extracted in taxes throughout the supply chain.