Gas Tax: Have Americans been Spoiled?
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Many of us remember when gas was 99 cents per gallon. Now, we are bemoaning the fact that most of the time, we have a hard time finding it for less than $4.00 per gallon. Do you realize, though, that the US has only 18 cents per gallon Federal tax on every gallon of gas… while many other countries charge several dollars per gallon for their gas tax. Robert Lutz is the Vice Chairman of Global Product Development with General Motors, and talks with us in this video about the gas prices today.
We were living in this fool’s paradise of cheap fool several years ago, according to Lutz. He feels that has harmed our country in many ways. It has permitted our infrastructure to go downhill, because we cannot keep it up to date. Also, our roads are in about the worst condition of anywhere in the World. This has also resulted in urban sprawl, as people realized they could live in a smaller, quieter community and afford the gas prices to drive to work in the cities. However, in Europe, the cost of gasoline is so high due to the Federal fuel taxes, people live much closer to the city in places like condos. If we keep spreading out here in the US, we’ll end up being one solid development from ’sea to shining sea’.
Starting in about the 1970s, Mr. Lutz started talking to people in Washington about considering a Federal fuel tax increase for just these reasons. So far, our government has refused to do this. I know… you’re screaming now, and hurling obscenities. You cannot imagine having higher Federal fuel taxes. Let me remind you, though, that in Europe they pay a few dollars per gallon, just in “Federal” fuel taxes. They have good roads. They have good infrastructures.
What’s the answer? Do we raise the federal tax on fuel to improve things like our roads? We are spoiled. We gripe over $4.00 per gallon for gasoline… try having to pay twice that over in Europe…. and in some cases, three times.
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23 Comments
Money Manatee
June 20th, 2008
at 10:52pm
We need to drill for oil in ANWAR, off the coast of Florida, etc. China is already drilling not far from Florida which I think is a shame.
Think about it… if there is a limited supply of oil, it will be used by someone. It might as well be us.
The solution is to drill. And on the subject of hybrids - do we really know the long term environmental damage that may be caused by the the batteries used in hybrids?
Google prius outdoes hummer environmental damage
Just my 2 cents :)
lilxkid24
June 20th, 2008
at 11:36pm
I would say the gas prices are high because the american business man have control of the oil fields. Oil is not that expensive in Iran or the Middle Eastern countries so the American Oil Company Ceo are raising the price so they can raise a fortune in money.
Griff
June 21st, 2008
at 12:18am
You know, a lot of people complain, and yet almost everyone on of them completely wastes their gas. I’ve seen people just sit idle in parking lots for an hour, since apparently they’re to good to get up and go into a store to shop!
Enjoy reeving your engine?? Every time you do that, your burning 3 times as much gas? Love to accelerate sharply? Again, burning WAY more gas than you need to be!
chris
June 21st, 2008
at 2:58am
First of all, oh yes Americans have been spoiled. Some calculations. If we say that gasoline is about 4 bucks a gallon now, and a gallon is about 3.78 liters, then you guys pay about 1.08 USD for a liter or 0.69 EUR.
In Europe, it averages around 1.50 or 1.60 EUR for a liter. (I’m European by the way)
We pay more than double what you guys pay, and trust me, people here gripe too. But if they would be put at your level… Well that would be insanely cheap for us. Prices are relative.
And of course, this changes the way people behave. Nobody here will drive for an hour to get to work, they either take the train or live closer to work. We all buy European and Japanese cars because they are more fuel-efficiënt. Did I mention taxes are alot higher here too?
All this is of course just an example, a snooty European going: “hah! that’s nothing!”
But it does show you how relative prices are, and that you guys should not count on it ever becoming cheaper again. Globally, it is already very cheap. Prices will probably not go down, ever.
Harry
June 21st, 2008
at 3:49am
I agree that much of our infrastructure needs immediate attention - and has for many years.
However, taking more money out of my wallet and giving it to a wasteful and sometimes corrupt government is NOT the answer.
What is the answer? Before we allow the politicians to take another tax dollar, we must insist that the same politicians spend the money they already take from us - on things that we know are important.
David Brenneman
June 21st, 2008
at 4:14am
I think the person saying we need this tax needs to try to make a liveing on the wages we make, instead of the big money he makes sitting on his butt. I don’t think these kind of people can even hold a candle to a blue collar worker, but because they got lucky getting a white collar job, they think they are better then us.
Its easy to say we need to pay more on gas when u make 10 times more then the blue collar worker in this country. Try liveing on our wages buddy.
GGCO
June 21st, 2008
at 4:24am
Chris,
I don’t know where you get only 18 cents per gallon in taxes. I know for a fact that here in Michigan our wonderful government takes 50 cents per gallon!
Our entire country is WAY different than European countries. We are spread out. You cannot compare our gas prices to Europe’s. Why? Because your numbers don’t take into account average salaries in the countries.
I was reading that gas costs basically the same to make any where. And that the reason why we see so many different prices is because governments either subsidize it or tax it like crazy.
In Saudi Arabia gas is 45 cents per gallon! In Venezuela it is only 12 cents! Oh, across the boarder in Mexico, gas is only $2.30 per gallon.
The bottom line is this. Gas sucks. We need a true alternative to it, and now is the time to make one.
Forian
June 21st, 2008
at 4:27am
I’m sorry, but you Americans have the simple life with Paris Hilton:
Since there are 3.785 litres per U.S. gallon (forget about Canadian gallons as they are irrelevant in this context), and gas is about $1.35/litre in Canada (Montreal), and the Canadian Dollar is at 0.98 U.S., we can calculate the price of gas in Canada at about $5.21 US/gallon. In the U.S., the average price is about $4.04/gallon.
In the Great White North, that means we are paying 20%+ than our neighbors South.
Good thing I’m heading to Vermont this weekend.
Jim in Virginia
June 21st, 2008
at 4:35am
What other countries do or don’t do has absolutely nothing to do with the United States and what we do or don’t do.
Maybe I’m getting too old, but in my personal experience and my own reading of history, I’ve never heard of any country taxing itself out of a problem. Taxes are the crack cocaine of politics and you want to give those blockheads in Washington more of it?
By the way, who told you Europeans have ‘good’ roads and ‘good’ infrastructures? Have you driven there? Italy, Greece, Spain, and France are absolutely AWFUL to drive in. The roads are narrow, patched beyond recognition, and are not at all modern. You said in your blog that “our roads are in about the worst condition of anywhere in the World”. The worst in the world? Really? Your credibiltiy suffers when you say things like this.
Oh yes, the Autobahn is magnificant, but it pales in comparison to the interstate highway sustem of the United States (undoubtedly the greatest system of roads on the planet - thank you very much Mr. Eisenhower).
Most European cities still have sewer systems that were hewn out of tree trunks a couple of hundred years ago. France is thinking about going back to a 40 hour work week because their economy can’t sustain their nanny-state lifestyle.
If you want the price of all energy to come down, you’re gonna have to have more of it (let’s face it, the demand curve isn’t really going to do much but slow it’s rate of increase, despite the advent of solar cell phone chargers and ‘green’ cars). The alternative energy sources everybody raves about are still far away and cannot bring up supply fast enough.
If you want the politicians to do something useful, ask them to allow more drilling everywhere it makes economic sense, and take the stranglehold off the development of nuclear power plants (the one thing France does right).
By the way, what’s the country with the highest gas tax in the world?
Turkey.
Now there’s a shining example of what we can become (fabulous roads and a really swell infrastructure).
More taxes? You have to joking.
Craig Robinett
June 21st, 2008
at 6:11am
The fuel tax in the European countries is well over triple the amount of ours in the US. When you consider the averages, Americans still pay more per gallon of actual fuel then that of our European counterparts.
I don’t disagree that taxes on our fuel in the US would have helped with road maintenance and other costs, but it should have been done when we were less affected by the fuel prices. To add it now would just add insult to injury.
I would really like to see the truth be told about the actual prices of fuel, rather than the price after taxes when comparing fuel costs with other countries. It just makes it sound better if Americans think they are paying lower prices than other countries, when in fact we are not!
Revelations From An Unwashed Brain
June 21st, 2008
at 7:07am
Chris Pirillo GM Didn’t Kill It: The Future of the Electric Car Car Batteries: Acid-Lead vs. Lithium IonGas Tax: Have Americans been Spoiled?The Car Community Interviews: Bob Lutz of General Motors Free Exchange Monitor Tool
mpgomatic
June 21st, 2008
at 8:04am
There’s no question that GM should produce a Cadillac version of the Volt … that’s where all the margin will be found.
They should also fit fuel-efficient clean diesel engines throughout their current range.
In the UK, the Cadillac BLS can be ordered with a clean diesel engine that produces 30% better mileage then the equivalent gasoline engine.
radioteletype
June 21st, 2008
at 8:42am
This is a silly.
Higher taxes=EVERYONE LOSES
You can’t be honestly advocating this unless you happen to not drive, and not purchase anything, and in fact be dead.
yeah
June 21st, 2008
at 11:07am
Yes Mr. pirillo, but you fail to realize that the people in europe make enough money to cover for the extra prices in gas whereas people in the U.S. do not. We are used to those prices, our economy is based on it and europe’s economy is based on the higher prices so introducing a higher tax would screw up our whole economy.
jsknow
June 21st, 2008
at 3:09pm
IT’S TIME TO TAKE STRONG ACTION ON FUEL. Email your representative in congress and push the issue: https://forms.house.gov/wyr/welcome.shtml
Don’t let them bs you about there not being enough farm land. We have over 100 million total farm acres in the USA and only use about half. The half that’s not being planted is more than enough to grow ALL our fuel. Not only that but the government is still paying farmers not to plant. Watch the video titled “HEMP FUEL Can Supply All Our Energy Needs” and read the article titled “Marijuana Facts The Government Does Not Want You To Know” on the website referenced at the bottom of this post.
Hemp can produce several different kinds of fuel. In the 1800’s and 1900’s hempseed oil was the primary source of fuel in the United States and was commonly used for lamps and other oil energy needs. The diesel engine was originally designed to run on hemp oil because Rudolf Diesel assumed that it would be the most common fuel. Hemp is also the most efficient plant for the production of methanol. It is estimated that, in one form or another, hemp grown in the United States could provide up to ninety percent of the nation’s entire energy needs.
Source: Schaffer Library of Drug Policy
Hemp is 4 times more efficient than corn as biofuel. Hemp pellets can be used to produce clean electricity.
… so powerful it could replace every type of fossil fuel energy product (oil, coal, and natural gas).
… This plant is the earth’s number one biomass resource or fastest growing annual plant for agriculture on a worldwide basis, producing up to 14 tons per acre. This is the only biomass source available that is capable of producing all the energy needs of the U.S. and the world…
Hemp will produce cleaner air and reduce greenhouse gases. When biomass fuel burns, it produces CO2 (the major cause of the greenhouse effect), the same as fossil fuel; but during the growth cycle of the plant, photosynthesis removes as much CO2 from the air as burning the biomass adds, so hemp actually cleans the atmosphere. After the first cycle there is no further loading to the atmosphere…
Source: USA Hemp Museum
JOIN THE EMAIL LIST, WATCH THE VIDEOS:
Internet Explorer: http://jsknow.angelfire.com/home
Other Browsers: http://jsknow.angelfire.com/index.html
Tom
June 21st, 2008
at 3:19pm
I agree with you Griff…People do waste their gas. But there’s nothing we can do about it, and the prices aren’t going to be going down any time soon. And since gas prices aren’t going to decrease anytime soon, you might as well get something out of it right? With gas becoming more and more expensive, Jack wants to help you fill your stomach. Bring any gas receipt to Jack in the Box next Thursday, June 26th, and get two free tacos. You know you love those tacos, don’t deny it.-the crispy goodness with the melted cheese, hot sauce, and crisp lettuce on the inside. No gimmicks, no hidden fees, no purchase necessary-just two free tacos. Don’t believe me?
Check out:
http://jackinthebox.com/twofreetacosday/index.php?Campaign=MW-TFT-B
And don’t keep it a secret…let all of your friends know if they like taaaaacos!
Kevin Turner
June 21st, 2008
at 9:37pm
Bob has some very good points on gas tax. I think they should add additional tax to our gas to fund the maintaining of roads.
Musso
June 21st, 2008
at 10:14pm
Considering the combination of state and federal taxes here in Kentucky amount to around 40 cents per gallon, around 60% of the total average price per gallon in Saudi Arabia, I would say gas is a bit high. But considering all the alternative fuels we “could” be utilizing we are spoiling ourselves. You can score an alternative fuel conversion kit for under $100. Why is it that we do not see more alternative fuel stations? Brazil is very fuel independent, they use sugar cane to make ethanol, I know corn is not a viable option for us to use as a fuel but you can make ethanol from garbage, literally!
PTyson
June 23rd, 2008
at 3:42am
So we are all supposed to go back and live in the city because GM and the government say so. I guess I should be thankful when I am living in my Condo and my neighbor decides he wants to watch the latest movie on his home theater at full volume at 1:00a.m. in the morning. After all I am saving fuel. When I get up in the morning with my eyes barely open and I drive the “short” trip to work I will make sure to remember GM and my government.
I lived for 40 years in the city dealing with noisy neighbors who trespassed with their dogs in my yard and would not even pick up after them. No THANKS!!! God help me if I ever have to move back into the city.
keith
June 23rd, 2008
at 7:11am
What makes you think that the government would actually use the extra fuel tax on the road infrastructure? The tax isn’t put into a lock-box just used for roads, it goes into the general fund. Same problem as the social security tax.
c2shiningc
June 23rd, 2008
at 8:07am
THIS IS NOT EUROPE OR CANADA OR EVEN ASIA, IT’S AMERICA!!!!! Stop paying full salaries to ex-politicians and put that towards the roads. Let the government officials travel in regular cards and not limos, helis and jets and maybe we’ll save a few bucks there for the “roads”. Where are all those rapidly rising bridge tolls going?? Not all for bridge repair I’m sure, how about using that money for the “roads”. Stop skimming off the top and maybe we’ll make a dent.
David Murray
June 23rd, 2008
at 8:16am
We aren’t so much spoiled as we are complacent. We allow others to think for us. We watch and listen to the dribble spouted at us by the media, our politicians and big business. Worst of all, we believe it as fact. More often than not, it is far from the full truth.
If you think oil companies, automobile manufactures, and politicans run in seperate packs, you are sorely mistaken.
They work together to keep the public duped into whatever it is they are selling us. Not overtly where it’s highly visable, but subtly and behind the cover of board rooms and closed (secret) hearings. It is a conspiracy.
We have had the technology to harness energy of all types for many years. Yet automobile manufactures are mandated by congress to make cars that get 30 something miles to a gallon by 2012 or some such garbage. Why is that, when they already have the ability to make cars that get over 50 miles per gallon, AND HAVE ALREADY DONE SO.
The oil companies own 20 plus years of oil reserves in this country in wells already drilled, but capped in order to keep supply at currant levels. They have refused to build refineries. so could not actually produce a whole lot more than present day production quotas, even if they are allowed to drill off our coasts and in Alaska. Personally, I don’t want to give them more as they give us less.
My wife and I just returned from vacationing in Oregon and Washington. We drove a 2000 Hond Civic that got 39 miles to a gallon. Gas ranged from $4,14 to $4.37 a gallon. Why?
Not because we are spoiled, but rather so a few can make a great deal of money. MONEY IS POWER!
We drove through hundreds of miles of beautiful desolate county where the wind blows 24/7 year after year (a tiny fraction of wind country). The not so surprising thing was the small number of wind generators in those areas. Electric power in this country could be clean and cost the consumer just a few dollars per month instead of a hundreds of dollars.
It is only a matter of our government or our power companies spending money to produce and use towers.
CarDomain Car Blog
June 23rd, 2008
at 11:04pm
There are four more videos, each ten minutes long (I didn’t know you could do that with YouTube–I guess Chris knows some kind of trick). Bob Lutz on the Future of Green Cars and Fuel Econom. Car Batteries: Acid-Lead vs. Lithium Ion.Gas Tax: Have Americans been Spoiled?The Car Community Interviews: Bob Lutz of General Motors.
Erik Emery Hanberg
June 24th, 2008
at 8:01am
As I mentioned before, last week I went to a “blogger’s roundtable” with Bob Lutz, the Vice President of Global Product Development at General Motors. I asked him whether we should have had a higher federal gax tax.One of the bloggers at the tablemanaged to get the last part of my question and then Bob Lutz’s answer. The video is six minutes long, but the first couple minutes are the most interesting. Keep in mind as you watch this who the speaker is.
GiM
July 11th, 2008
at 3:05am
Before compare with Europe, compare with America…
In Canada we have higher taxes and poorly roads versus US, which means no connections between…