Everytime something happens around the middle east, or there is a big storm that strikes a major oil refining or exporting place in the world everyone always frets about rising gas prices. Now politicians are once again talking about the high gas prices, and punishing those evil corporations for making a profit. All the fuss made by the government over gas prices is pretty ridiculous when you consider that the government makes more money per gallon of gas sold than the oil companies do.

In 2004 major oil companies in the United States made 42.6 billion dollars in profit, now sure it sounds like a boat load of money, and it sure as hell would make them look as if they were involved in price gouging since the price of gas is so high... At least it seems that way until you look at how much the government made off the oil companies in 2004, if your curious the number is 58.4 billion dollars in tax revenue off the companies.

Hmmmm, maybe the government should ensure lower gas prices by first giving up their stake in the oil industry by lowering the taxes on the oil companies. Maybe if companies like Shell wouldn't have to set the price so high to make a profit if they weren't being forced to pay an 18 cent per gallon federal gasoline tax, and a state gasoline tax that in some states is as high as 32 cents per gallon sold. Maybe if they weren't forced to pay so much in taxes they would be able to charge less to still turn a profit.

If you tax it you get less, if you subsidize it you get more, the less government taxation there is in the free market, the lower the prices will be.