It shows the cost of fuel relative to the taxes in a number of countries. Incidentally, the cost of a barrel of oil at the latest prices, $75, is around 55% of the price ex tax as shown on the chart.
What is interesting is that in the west counties such as Germany, France and Italy who have no oil are charging the same at the pump as those who do have oil such as Britain and Norway. It is equally interesting that USA who produce in excess of 50% of the oil consumed here have a similar price ex tax. Compare these figures to China, Russia, Saudi and Venezuela and it is an interesting contrast! Then look at oil companies profits.
In the main European countries, liberal governments have been in power for some time. This cycle shows real signs of changing however people have had enough. These liberal governments had found when they were last out of office that they were being attacked by the right for being the party of high taxes. In Britain for example Tony Blair's government made a promise that if elected they would not raise income tax. This is a promise they have kept but instead they have raised all other taxes (and introduced new) as stealth taxes. In the UK gas is around $6.3 per US gallon and around 75% is tax. It is not too far off in Germany and France.
These taxes were applied to restrict the size of vehicles and their use of fuel or so everyone was told. This has not been successful as large SUV's are still around in large numbers as are very high performance cars and people are traveling even more. Great news for tax revenues!.
Non income taxes in UK range from 17.5% Value added tax (on almost everything and this percentage is even higher in some European countries) 75% on fuel, 10% in addition to the 17.5% VAT on cars and huge withholdings from employers and workers for NI (National Insurance) which has nothing to do with the money eating National Health Service and is a parallel income tax in fact.
The Liberal governments who were so out spoken when in opposition to tax cuts for the rich are strangely silent on this subject now. It is the middle classes and poor who suffer from these creeping taxes the rich can always cope with these as they are a small proportion of their disposable income.
George Bush and the Republicans need to get this message across. Beware USA, liberals will ensure that you follow the European model!! When it comes to the potential to increase taxes other than income taxes 'you aint seen nothin yet!'
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