Gas Prices: Who’s to blame?

 Cost of gas has risen over two dollars a gallon  People blame the government for the cost.  Half the price of a gallon of gas goes to the state and federal government.  Automobiles are becoming the popular mode of transportation.  States are being upfront to their residents/consumers about where their money goes. Overview

If a gas station on the interstate in Iowa has about three hundred gas customers per day that on average purchased ten gallons each, $660 that day would go the state government and $540 would go to the federal government. All together that is $8,400 a week in taxes!

 We shouldn’t be pointing our fingers at the Government because there are a lot of other factors that weigh into the price per gallon. Thesis

- Those that blame the government think that we are being charged extra for unnecessary projects cents goes to the Highway Trust Fund, 2.86 cents goes to the Mass Transit, and.1 cent goes to the Leaking Underground Storage. - Pay a considerable amount at tollbooths to fund highways and bridges. - Already getting taxed enough through federal tax dollar. -Defense and Security, Social Security, and Medicare, Medicaid, and CHIP. Arguments Behind Those Blaming the Government

 Those that don’t blame the government believe prices have spiked because of past oil spills and potential scarcity of oil in the future.  “Oil prices are directly related to gasoline prices – for every one dollar increase in the price of a barrel of oil, gasoline prices rise 2.5 cents per gallon at the pump. Thus, a $10 increase results in about a 25 cent increase for a gallon of gas.” –Matt Rosenberg  The cost of transporting the oil, the cost to refine the oil, and the profit the dealer needs to make off of the gas effects about half of its price.  Washington created clear plan for consumers:.08 cents to the 2005 Transportation Partnership Program,.05 cents to the 2003 Nickel Package Projects,.11 cents to the Local Roads Project,.04 cents to the Debt on Previous Projects, and.11 cents on Maintenance, Operations, and Safety. Arguments For it Not Being the Government’s Fault

Mediation  Conserve gas as citizens  Include a new category in the federal tax dollars that would only take a small amount away from the three current categories.  Modifications within states so that highways aren’t having to be re- done so often.  Plan projects with ONLY money that is available to avoid debt. (Not expecting to receive a certain amount from taxes) Conclusion

 DRIVESTEADY,. "Where do Gas Taxes Go?." DRIVESTEADY. N.p., 07 Oct Web. 1 Apr  "Policy Basics: Where Do Our Federal Tax Dollars Go?." Center on Budget and Policy Priorities. Matrix Group International Inc., 15 Apr Web. 1 Apr  Rosenberg, Matteo. "Gas Prices Rising." About.com. The New York Times Company, 05 May Web. 1 Apr  Sommer, Jeff. "Numbers That Sway Markets and Voters." The New York Times. N.p., 03 Mar Web. 30 Mar  "U.S. Federal & State Gasoline Taxes." Common Sense Junction. Concord Learning Systems, 01 Jul Web. 31 Mar  UTAH,. "Charts ‘o the Day – Gas Prices at the Pump and Inflation." The Rio Notre Line. N.p., Web. 30 Mar Works Cited

 Jeffrey Sommer. Gas Prices Disparity Seems Here to Stay. N.d. Photograph. Blogspot.comWeb. 15 Apr gasoline-prices.html>.  Oil retreats after breaching $ Photograph. BBC NewsWeb. 15 Apr  Tiffany Gabbay. Inconvenient photo taken at Exxon gas station just outside white house Photograph. The Blaze LLCWeb. 15 Apr  U.S. Federal & State Gasoline Taxes Photograph. Concord Learning SystemsWeb. 15 Apr rate.html>. Works Cited (Photos)