Richard Grayson’s Platform: #3 Impose a $1 Patriot Tax on a Gallon of Gasoline

We need to tax each gallon of gas one dollar to diminish our transfers of wealth to the Russian, Venezuelan, Saudi and Iranian treasuries and to spur innovation in energy efficiency by U.S. manufacturers.
This “patriot tax” would offset some of our payroll taxes, pay down our deficit, strengthen our dollar, stimulate energy efficiency and shore up Social Security.

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4 Responses

  1. Russia, Venezuela, Saudi Arabia and Iran?

    No, wrong.

    You mean:

    Canada, Saudi Arabia, Mexico, Venezuela, Nigeria, Iraq, Angola, Ecuador, Algeria, and Brazil, don’t you?

    Those are the top 10 sources of foreign oil. We import more oil from the United Kingdom than we do from Russia or Iran. We import more oil from our neighbors to the north and south than we do from all Middle Eastern countries combined.

    Read the facts, Dick.

  2. I was listing the nations I felt were the most problematic — taken from Thomas Friedman’s New York Times column in which he castigated the candidates, and the President, for not proposing this patriot tax after 9/11.

    I would think that anyone who wasn’t a simpleton would have realized it.

    And my name is Richard. I don’t think I’m the dick in this conversation if you would prefer that your money go to foreign countries’ coffers than to the U.S. treasury.

  3. This type of tax also appeals to me.

    Here is some relevant information from the Wikipedia article “Fuel Tax”.

    United Kingdom [tax = $5.04 per gallon]
    Main article: Hydrocarbon oil duty
    From 2007-10-01 the main road fuel (petrol and diesel) duty rate in the UK is GBP£0.5035 per litre. The rate for biodiesel and bioethanol is £0.3035.[4]

    Jet fuel used for international aviation attracts no duty, and no VAT.

    Note: in the UK, Value Added Tax (VAT), currently at 17.5%, is also charged on the price of the fuel and on the duty. At a pump price of 100p/litre (typical for unleaded as at November 2007), this would put the combined tax at 65.24p/litre, or approximately USD$5.043 per gallon. (Thus without tax, the retail price would be 34.76p per litre, making a combined tax rate of 188%.

    United States of America [tax = $0.47 per gallon]
    The first U.S. state tax on fuel was introduced in February 1919 in Oregon.[5] It was a 1 cent per U.S. gallon (0.3¢/L) tax. In the following decade, all of the U.S. states (48 at the time), along with the District of Columbia, introduced a gasoline tax. By 1939, an average tax of 3.8¢/gal (1¢/L) of fuel was levied by the individual states. The fuel tax in Texas is currently set at 20¢/gal since being raised to that amount in 1991. In May of 2007, the Texas House of representatives unanimously voted to pass a ‘gas-tax relief’ measure for the 2007 summer driving period. The measure was not passed by the state Senate.

    While state fuel taxes had been around for more than a decade, the first federal gasoline tax in the United States was created on June 6, 1932 with the enactment of the Revenue Act of 1932 with a tax of 1 cent/gal (0.3¢/L). The U.S. federal gasoline tax as of 2005 was 18.4¢/gal (4.86¢/L), and the gasoline taxes in the various states range from 10 cents to 33 cents, with an average about 22 cents per U.S. gallon (5.8¢/L), making the average combined tax on gasoline 42¢/gal. Unlike most goods in the U.S., the price displayed includes all taxes, rather than being calculated at the point of purchase.

    The head of the U.S. Dept. of Transportation stated on 15 August 2007 that about 60% of federal gas taxes are used for highway and bridge construction. The remaining 40% goes to other, unrelated uses.[6] However, revenues from other taxes is also used in federal transportation programs.

    Taxes on Gasoline for Transportation by U.S. State in U.S. cents per gallon (25 July 2007)[7]
    State State gas excise tax Other state taxes (general sales tax, average county/local sales tax, environmental fees, wholesale taxes) State tax total State + federal tax total
    California 18.0 26.4 (7.25% + 1.2) 44.4 62.8
    Connecticut 25.0 18.9 (7%) 43.9 62.3
    New York 8.0 32.9 40.9 59.3
    Rhode Island 27.0 4.0 31.0 49.4
    Maine 27.6 1.5 29.1 47.5
    U.S. Average 18.2 10.2 28.5 46.9
    Massachusetts 21.0 2.5 23.5 41.9
    Vermont 19.0 1.0 20.0 38.4
    New Hampshire 18.0 1.6 19.6 38.0
    New Jersey 10.5 4.0 14.5 32.9
    Alaska 8.0 0 8.0 26.4

    Germany [tax = $7.62 per gallon]
    47.04 Euro-Cents per litre for ultra-low sulphur Diesel
    65.45 Euro-Cents per litre for conventional unleaded petrol
    plus Value Added Tax (19%) on the fuel itself and the Fuel Tax. That adds up to prices of 1.19 Euro per litre for ultra-low sulphur Diesel and 1.37 Euro per litre (approximately USD$7.615 per gallon) for unleaded petrol (Sep 2007).

    See also
    Carbon tax

    References
    ^ “Oil and Gas Prices, Taxes and Consumers”, Department of Finance (Canada), July 2006, pp. 6b) Application of the GST. Retrieved on 2007-12-13.
    ^ Converted from CAD to USD with Google Calculator, 13 Dec 2007
    ^ “Backgrounder – How municipalities benefit from provincial gas tax funding”, Canada NewsWire, Govenrnment of Ontario, Canada. Retrieved on 2007-09-07.
    ^ Hydrocarbon Oils: Duty rates. UK HMRC.
    ^ Corning, Howard M. Dictionary of Oregon History. Binfords & Mort Publishing, 1956.
    ^ http://www.pbs.org/newshour/bb/transportation/july-dec07/infrastructure_08-15.html
    ^ [http://www.api.org/policy/tax/stateexcise/index.cfm State Motor Fuel Excise Tax Rates], American Petroleum Institute, 25 July 2007

  4. Wizard.

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