By Jeff T. Allen
The senators standing in front of the gas station would have you think such profit is the biggest chunk of your purchase price -- but it isn't even close. The taxes on gasoline at retail amount to a national average of 47 cents per gallon (including federal taxes of 18 cents, state and local taxes of 18 cents, and sales/other taxes at retail of more than 10 cents). And before taxpayers have paid that princely sum (to people who haven't invested a penny to produce the product), the operating profits of the explorers are taxed at 34% -- which is always passed on to consumers in the form of higher prices.
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