Haven't they figured it out? It's just passed to consumers.
Yes. But in the process, a good amount flows to venture capitalists investing in "greentech."
The state of California is the new Venture Capitalist piggy bank, enabled by the initative process.
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Total tax on gasoline in California is $.50/gal. This tax is exceeded by only two other states, Hawaii and Nevada.
yitbos
In a market like crude oil, price of product is based upon supply and demand, not cost plus expenses. If oil sells for $70 a barrel, it doesn't mater if it cost you $10 to bring it to market or $50. Nobody will pay more because the producer paid more. The commodity is fungible.
What taxes like this do is encourage producers to invest their capital somewhere else like Russia. There they can make more money from their investment. But then the US doesn't get the taxes and royalty payments.