Gas watcher warns $1.20 a litre (Canada)

[Canuck]

Originally Posted by PhishPhood

Get off the Faux News pablum it weakens the brain.

It's not at all accurate that as fuel prices go up the more tax revenue is increased... unless you're in Cali. The price of the gas has nothing to do with how much revenue the Feds or state governments get. The Feds get 18.4 cents per gallon whether the price is $2/gal or $4/ gal. Ditto most states. Do you need a reference for this data. Try Google.

In fact when the price of fuel gets too high the Feds and most states lose tax revenue since people buy fewer gallons.

Enough with the name calling. The point is in Canada as prices rise so do tax revenue. Reread the post you are complaining about.

[Kchoz]

Originally Posted by Canuck

Enough with the name calling. The point is in Canada as prices rise so do tax revenue. Reread the post you are complaining about.

Most of the taxes on gas in Canada aren't paid proportionally to the price of gas but are rather fixed prices per volume of gas. The federal excise tax on gas is 10,5 cents per liter, no matter the actual price of the liter of gas, and provinces also charge different amounts varying around 15 cents per liter. The only taxes that increase with the price of gas is the GST and provincial sales taxes. Maybe those taxes coming from gas sales increase when prices increase, but as it's the same rate as what consumers pay on other goods and when people pay more for gas they spend less on other goods, the argument that it increases tax revenues, when you consider things globally, is debatable.