Myth: Taxing crude oil takes money from oil refinery profits
Posted by: Wayne in Economy, MythsTruth: all of the taxation on oil is paid for by consumers, if they (the refinery) pays $1.00 for the raw material they mark the price up 10% and sell it for $1.10 and if they pay $10.00 they mark the price up 10% and sell it for $11.00. The investors in oil do not make less money based on a tax on the raw product the consumer pays a higher price for the finished product. Investors actually make more money on a higher costing product unless people stop using the product.
Second myth: only people who own a car pay for taxation of crude oil. This is false, all industrialized nations use energy to replace human labor; one human with a power tool can make ten times as many widgets as a human with a hand powered tool. When the price of energy goes up it effects all products that rely on energy, modern US farms produce more food than human powered farms not because the farms have a high IQ but because they have a modern beast of burden that uses energy and does 10 times as much work.
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