Gas Prices: Who’s to blame?

Should we really be pointing our fingers at the Government or is there a lot more

factors that weigh into the price per gallon?

In some states, the cost of gas has risen over two dollars a

gallon since the year 2000 (UTAH).

Several people have been pointing their fingers at the

government and more specifically, President Obama.

Almost half the price of a gallon of gas goes to the state and

federal government.

In developing countries, 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!

Is it really the current President’s fault for the up-rise in these prices? Can the government as a whole affect the gas prices that much?

Thesis

- Those that blame the government think that we are being charged extra for the funding of unnecessary projects.

- 15.44 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 the 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-Ultimately the state and government are charging us a little more than most likely necessary, but one must consider that the oil companies and the amount of demand we have for gas solely determine more than half the cost per gallon. We as a whole can help a small amount by limiting trips for errands, carpooling to work and events, and walking more often.

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 2011. Web. 1 Apr 2012. <http://drivesteady.com/where-do-gas-taxes-go>.

"Policy Basics: Where Do Our Federal Tax Dollars Go? ." Center on Budget and Policy Priorities. Matrix Group International Inc., 15 Apr 2011. Web. 1 Apr 2012. <http://www.cbpp.org/cms/index.cfm?fa=view&id=1258>.

Rosenberg, Matteo. "Gas Prices Rising." About.com. The New York Times Company, 05 May 2010. Web. 1 Apr 2012. <http://geography.about.com/od/globalproblemsandissues/a/gasoline.htm>.

Sommer, Jeff. "Numbers That Sway Markets and Voters." The New York Times. N.p., 03 Mar 2012. Web. 30 Mar 2012. <http://www.nytimes.com/2012/03/04/your-money/rising-gasoline-prices-could-soon-have-economic-effects.html?_r=1&pagewanted=all>.

  "U.S. Federal & State Gasoline Taxes ." Common Sense Junction. Concord Learning Systems, 01 Jul

2011. Web. 31 Mar 2012. <http://www.commonsensejunction.com/notes/gas-tax-rate.html>.

UTAH, . "Charts ‘o the Day – 2000-2012 Gas Prices at the Pump and Inflation." The Rio Notre Line. N.p., 2012. Web. 30 Mar 2012. <http://therionorteline.com/2012/03/01/charts-o-the-day-2000-2012-gas-prices-at-the-pump-and-inflation/>.

Works Cited

Jeffrey Sommer. Gas Prices Disparity Seems Here to Stay. N.d. Photograph. Blogspot.comWeb. 15 Apr 2012. <http://majikphil.blogspot.com/2012/03/science-of-gasoline-prices.html>.

Oil retreats after breaching $96. 2007. Photograph. BBC NewsWeb. 15 Apr 2012.<http:news.bbc.co.uk/2/hi/7072476.stm>.

Tiffany Gabbay. Inconvenient photo taken at Exxon gas station just outside white house.. 2012. Photograph. The Blaze LLCWeb. 15 Apr 2012. <http://www.theblaze.com/stories/inconvenient-photo-taken-at-exxon-gas-station-just-outside-white-house/>.

U.S. Federal & State Gasoline Taxes .. 2011. Photograph. Concord Learning SystemsWeb. 15 Apr 2012. <http://www.commonsensejunction.com/notes/gas-tax-rate.html>.

Works Cited (Photos)

Overall Comments: Your Response Team, for some reason, responded in two submissions rather than collaboratively, as I required. Still I do agree with the solo submission that occasionally your vocal tics and body language were too jejune for the presentation. The price of gas is a serious subject after all, and you did a lot of research into the reasons for the prices, reasons themselves serious. Happily, though, that excellent research is on display here, in a convincing mix of text and visual that makes good use of PowerPoint technology. Your “Thesis” slide is misnamed — it states the “Central Question,” rather — but that question is made perfectly clear by both the text and the visual. The succeeding slides, blaming the government and the opposite, are thorough yet lively, with a fitting use of color, I admire, later on, how you’re careful to cite both the text and the images. A or 95

Mr. Domini Comments

Kaleigh Kramer, VF Lana Vilez, VF Response to Erin Tepper presentation Erin’s presentation was mediation between blaming the government for high gas prices and other factors that contribute

to high gas prices. She gave a background about where the money goes from the gas prices and which states pay the most towards the government. Tepper used an easy to understand equation that demonstrated how much we pay in taxes for gas. Her mediation was that the government may be slightly raising gases prices but the main reason for these high gas prices is the cost of transporting the oil and scarcity of that oil. She also gave examples of how citizens can cut down the gas prices by doing this such as car-pooling, walking, and not running as many errands. Over all, Erin’s presentation was very informative. The use of examples made it easier for the average student to understand. She seemed to have a lot of knowledge’s and had done a lot of research about her topic; she answered the group questions very well. A lot of mediation have been one sided but Erin’s seemed to cover both sides of the argument equally and her mediation fell in the middle instead of on one side. Her presentation was very well organized and interesting.

  Also: Zachary Mlcoch Erin Tepper Presentation

After reading Erin Tepper’s paper and seeing her presentation, I realize she has a very good topic. Her paper was alright with nothing to special in it, but her presentation added to the over-all work. The topic of her choice was about gasoline prices and who should be blamed. Her presentation followed the same layout as her paper with every paragraph being mentioned. I felt she did a good job with the presentation. Some flaws of hers that may have taken away from the presentation are her vocalics like uh and and um. Having these in every presentation diminishes the quality the audience perceives. Along with this, posture could have used more work along with eye contact and even hand gestures.

  

Group Response