Gas Prices Hit Working Class

Discussion in '2007 Archive' started by KenH, Nov 13, 2007.

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  1. KenH

    KenH
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    Gas prices hit working class

    Study says lower income people effectively pay 8 times more to fill up; broader economy could feel sting.​

    By Steve Hargreaves, CNNMoney.com staff writer
    November 13 2007: 4:38 PM EST

    NEW YORK (CNNMoney.com) -- Lower-income Americans spend eight times more of their disposable income on gasoline than wealthier residents do.

    The disparity is dramatic. In Wilcox, Ala., people spend 12.72 percent of their income to fuel one vehicle, according to a new study from the Oil Price Information Service (OPIS).In Hunterdon County, N.J., people spend 1.52 percent.

    The study illustrates the impact rising oil prices are having on people's budgets. Many economists have downplayed the effect gasoline prices will have on consumer spending. But with prices now pushing above $3 and studies like this, some say the economy may take a hit.

    "It's stinging less in some areas than it is in others," said Fred Rozell, retail pricing director at OPIS, an energy research firm. "It's tough out there for a lot of people."

    The most painful places to fill up were in Alabama, Mississippi or Kentucky. In each case residents there pay more than 11 percent of their income to fuel their car.

    - rest at http://money.cnn.com:80/2007/11/13/news/economy/gas_burden/index.htm
     
  2. carpro

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    Uh huh. And democrats are still trying to raise the federal tax on gasoline by 50 cents to a dollar.
     
  3. hillclimber1

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    The Dem's never will learn, it seems. Even with all the evidence for prosperity through lessoning taxation, they don't believe it. What's sad is that they seem to really believe that more taxes is in some way good. Socialism rising.

    I filled up my little run around Sentra the other day, and it cost $35, for around 11 gallons. I can easily remember filling for $10 and getting change back.
     
  4. rbell

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    everyone take a minute or 3 and write your Representatives. Encourage them to open up Gulf and North Slope resources to oil drilling, as well as new refinery construction.

    Won't help today...but it will help later. Not to mention that word of new resources will calm down the market.
     
  5. Palatka51

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    Don't forget the Gulf of Mexico as Florida continues to ban new exploration. Meanwhile Cuba is allowing China to explore off its shores.
    We need to get back on track with nuclear power as well.
     
  6. donnA

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    With higher gas prices come higher everything else, groceries, etc. And beleive me, it hit hus hard a long time ago, I've had to cut out a lot of our usual, and eat cheaper, as cheap as possible, can't afford fresh veggies anymore.
     
  7. Sopranette

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    We're certainly feeling it. DH has to fill up the minute he's running low or he will stall on the freeway. I put $20 in mine, and that needs to last as long as possible, at least two weeks. I can run on fumes for a couple of days. Forget about last minute runs to the store...we better use what we have, and anyway, don't have anything left to spend on last minute items. And the gas prices are affecting food prices, too, just to ship everything around the country. $4 for a gallon of milk?! Plus we use propane to heat the house. Thank God it's been really warm here, about 70 today at least. We got the tank filled to 50%, that should last us well into the next year, with the fire place for quick warm ups before bed and when we get up, maybe all the way to spring, when the prices should drop a little. We get free fire wood at least.

    love,

    Sopranette
     
  8. LeBuick

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    Was this in the link?
     
  9. Baptist in Richmond

    Baptist in Richmond
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    This is the closest thing to a consumption tax (or even a flat tax) we have, KenH.
    I would imagine that Neil "Fair Tax" Boortz would be pleased with this fact. After all, everybody pays the same rate - the amount of tax paid is simply based upon one's consumption.

    Regards, hope all is well in Arkansas,BiR
     
  10. KenH

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    As I stated in the Politics Forum I would go along with a flat income tax that had a standard deduction for a family of four that was twice the poverty line. It is unlikely that the American people will go along with such an idea.

    Personally, I like the idea of a consumption tax but it is even more unlikely to be passed than a flat income tax.
     
  11. Baptist in Richmond

    Baptist in Richmond
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    That means prices would increase on everything as each facet of a product will pass that flat tax on to the consumer.
     
  12. KenH

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    I know. Don't worry, BiR, it will never pass in these United States for the forseeable future.
     
  13. David Lamb

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    Here in the UK, petrol ("gas" as Americans call it) is now around one pound sterling per litre, that is, $2.06 per litre, or $7.80 per US gallon. Price don't vary county by county, as American ones seem to state by state. Rather, fuel seems to be more expensive in big cities and in very rural areas.
     
  14. carpro

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    Quote:
    Originally Posted by carpro
    Uh huh. And democrats are still trying to raise the federal tax on gasoline by 50 cents to a dollar.




    I don't believe so.

    How many would you like? It's been going on for years.
     
  15. billwald

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    >The most painful places to fill up were in Alabama, Mississippi or Kentucky.

    Scab states. Breaks my heart. Live in a "right to work at a poverty wage state" and pay the price.

    Americans think they have a right to a job in the city and a hoiuse in the country. Why should retailers charge less than people are willing to pay?
     
  16. billwald

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    Crude oil costs about the same in dollars in most every western nation. The difference is mostly in taxes. Once a tanker is loaded with oil the additional transportation cost per bbl is so low that the owner of the cargo doesn't care where he sells it. This is the nature of the commodities market. The local bulk prices are adjusted to produce the same net cost in every port. Arab oil will net the same to the cargo owner in New York as in London.

    I'd like to see a $1/gal oil tax to pay for the Bush oil war. Net result of our cheap gas is that the people with economical cars and those who walk to work subsidize those with gas hogs.
     
  17. Pastor Larry

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    This is happening now. No business pays taxes. All business taxes are passed on to the consumer. At least with a consumption tax, people would know how much of what they are paying is for tax.

    But by the standard of this article, all prices affect the "working class" people more than the upper class.
     
  18. KenH

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    That is an economic myth.
     
  19. Pastor Larry

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    Really? Where do businesses get money to pay taxes with?

    A business has no money unless it receives it from the consumer of their goods and services. So whether it is paying taxes or paying wages, businesses do it with the money of consumers.
     
  20. KenH

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    I explained this to you a while back, Pastor Larry. I'm not going to waste a lot of time doing so again except to say that prices are set by the market for products; if a company can only sell a product for $100 then that is what it will sell it for; it can't say, well, we want an additional $30 for this product to cover our corporate federal and state income taxes and sell it for $130 if the market will only support a $100 price.

    Have a great evening, Pastor Larry. :)
     
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