Posted on 08/15/2006 2:47:39 PM PDT by bruinbirdman
Gas prices hit a record high over the past three weeks, with Chicago leading the way.
According to the Lundberg Survey released Sunday, the national average price for self-service regular rose just over one cent to nearly $3.03 a gallon -- while the Chicago average was $3.29 a gallon, the highest average in the country.
But don't blame the oil companies for singling out Chicago, says Dave Sykuta of the Illinois Petroleum Council. The real culprit is taxes.
** While only nine states and the District of Columbia allow sales taxes on gasoline at all, Illinois not only has a sales tax but it has the biggest one -- 5 percent.
** Illinois is also the only state that allows local taxing bodies to pile on; that means the city of Chicago and the Regional Transportation Authority get an additional 4 percent, bringing the sales tax in Chicago to 9 percent.
** Then Chicago also grabs an additional 5 cents a gallon and Cook County takes an additional 6 cents a gallon.
**Add in the federal and state motor fuel taxes, which are earmarked to fund roads, and you get nearly 80 cents a gallon for taxes.
But it's the sales taxes that bring on the big hurt, according to Sykuta. Because they are a percentage, more taxes get paid as the price of gas goes up.
"We're the biggest tax collector outside of the IRS," Sykuta said of the service station industry.
Source: Art Golab, "Chicago taxes its way to highest gas prices," Chicago Sun-Times, August 15, 2006.
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$3.29?!? I wish! Here in Southern Cal you're lucky to find regular for less than $3.30.
When I had an office in Chicago, and commuted back home on weekends to Ohio, I would fill my tank AFTER I crossed the border into Indiana, then would fill the tank on the way back BEFORE I crossed into Illinois. (That was back in 1995, and it has only gotten worse as the percentage has grown alot in total $, since the price of the gasoline is near doubled from then)
Just saw 2.72 posted, bought at 2.78 earlier Houston berbs.
Wow- some back-of-the-envelope math shows that gas is cheaper here in Canada. I filled up today for 94.5 cents Canadian per litre, which is ~$2.87 US for a US gallon (3.8L = 1gal, CAD $1=USD $0.80).
OTOH it's all academic to me- my Yamaha gets >100mpg :-D
$3.29? Where do they get the idea this is the most expensive? I drove around a small southern California town last night looking for the lowest price and for regular at a convenience market the lowest is $3.38. This is not average, it is the lowest in the area. The average is probably closer to $3.43.
Bought gas for 2.74 in Central Texas yesterday, but then we have been drilling and selling oil for 100 years, so we should be rewarded for what we do for the nation. If everyone else did that, we wouldn't have these prices now.
Wouldn't surprise me if Baker, CA was between 3.50 and 4.00 right now. Last year, on my trip out west, I bought gas there for about 2.97 (in most of the country, it was between 2.00 and 2.50 at the time).
I thought San Fagcisco had the highest prices in the country.
I can usually save about $.20 to $.25 per gal.
Dave will be doing a segment on "Chicago Tonight" tonight at 7:00 on Chicago's PBS Channel 11. He makes a pretty good case for the oil companies. I've seen him in segments with our Senator Dickie bin Durbin and they really go at it.
BTW, last Thursday I paid 3.33 in the NW 'burbs ... today I scored for 3.15!
I went to Chicago for a day when I was camping on Lake Michigan in June. Easily one of the rudest cities to drive in I've ever seen. Looks like they've made a real big government nightmare up there. Too bad. I like Chicago.
Here's where the Democrats are screamin' about "big oil obscene profits", and that we need to "tax the crap out of 'em", while they don't tell the truth that the TAXES have far exceeded the increase in true PRODUCT costs!
What is obscene is the continual increases in taxes on EVERYTHING THAT AIN'T NAILED DOWN (and THAT gets taxed, too).
ooopps ... should have said 2.29 ... plus tax
Even before the price of gasoline got so high, I decided never to buy a gallon of gasoline in Chicago because of the taxes, and it's been years since I have. The same for a lot of my other business. I live near the Indiana line and, if I can get what I need in Indiana, I'll go there. Of course, the geniuses who run our city and state governments have made the decision even easier for me, or have kind of forced a decision on me, depending on how you want to look at it. The disparity in taxation between Chicago and Indiana has destroyed a lot of business in my neighborhood --no gasoline stations within 5 miles in Illinois, few convenience stores, grocery stores few and far between -- so that I have to drive a few miles into the bustling, active world of NW Indiana and make my purchases there.
Freinds in Chicago will drive over the border to fill their tanks if they're close enough to make it worthwhile. I believe only Kalifornia and Hawaii have higher taxes on gasoline (total tax) than Illinois, as I recall.
Yeah, it's the old law of unforseen consequences.
And in addition, there's the fact that whereas governments find it easy to increase taxes or invent new ones, they find it very, very difficult to reduce spending. When some taxes are eliminated, other taxes increase. The spending goes on and on.
Me neither...the gas stations there cater to the "I gotta get some NOW" drivers who didn't think to do it in Vegas or Barstow.
I'll stop and eat at the Bun Boy, but I sure as hell would hope I'm smart enough not to need gas in Baker.
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