Over the last 31 tax years, our government has been better than a 50% “profit partner” in the oil and gas industry.  Of course, government shares none of the downside risk and liability of the turbulent business.

Since 1977, governments collected more than $1.34 trillion, after adjusting for inflation, in gasoline tax revenues—more than twice the amount of domestic profits earned by major U.S. oil companies during the same period.

The Tax Foundation’s Scott Hodge and Jonathan Williams noted that “in recent decades governments have collected far more revenue from gasoline taxes than the largest U.S. oil companies have collectively earned in domestic profits.” In fact, “since 1977, there have been only three years (1980, 1981, and 1982) in which domestic oil industry profits exceeded government gas tax collections.”   View Story

As prices at the pump continued to rise, politicians have been vilifying oil producers and gas stations for gouging the working man.  While some vilify the oil producer for a perceived excessive profit, the profiteer extraordinaire is our government!  Of course, Illinois is a leader of the 50 state tax pack.

Illinois is only one of ten states to charge a sales tax on top of a gas tax, environmental tax, storage tank tax, (in Cook County, also a county sales tax!), and  the federal gas tax!  Did you know that nearly 60 cents in the price of gas does not go to the gas station owner or the oil producer-  it goes directly into the coffers of government:  federal, state, or county.  In Illinois, nearly twenty percent of the current price of gas is government taxation!

Here is the transparent breakdown of government taxes in the price of a gallon of gas.  The Federal Government charges 18.4 cents tax per gallon;  revenues go to the federal road fund.  The state of Illinois charges an additional 18.4 cent flat tax per gallon;  proceeds go into the state road fund.  Additionally, Illinois charges a 1.1 cent environmental flat tax per gallon tax.  On top of this, Illinois charges consumers a 6.25% sales tax; where the revenues are deposited into the general fund of Illinois.  The last Illinois tax is the .3% tax for the underground storage tank fund!  Then, counties may also apply a local sales tax; thus, crossing from DuPage to Cook County hikes the price of gas.

Other government tax receipts are more transparent.  For instance, your Wal-Mart sales receipt breaks out the sales tax.  Your property tax bill breaks out the individual taxing bodies and their share of the total.  Only the gas receipt has no delineation of the taxes paid.

Why do our politicians decry the oil companies on one hand, while rake in excessive tax monies with the other hand?  At the very least, the oil company has drilled, refined and distributed a necessary product.  Government has only taxed it.

For The Good Of Illinois... provide transparency at the pump!