Oil Falls, Dems Work The System

Good news for all those who own cars. Now that I do not own a functioning vehicle, I have to speculate that I alone am the cause for this price decline. Last summer I was driving over 2000 miles a month and now I am down to zero. Interesting how my driving is directly correlated to gas prices, when it ought to be inversely related. Anyway, gas is about to get even cheaper unless you live in California, potentially. Their gas "not tax" is interesting. Apparently there are some shady Democrats down there.

In California, When Is A Tax NOT A Tax?

Today the Democrat-controlled legislature in California is hoping to raise $9.3 billion in revenues through a legal loophole. Under state law, a two-thirds vote is needed to raise taxes, and that means some Republican votes are needed. So far, Republicans have not budged on a budget package that includes tax hikes to close California's gaping $15 billion shortfall, a shortfall which could reach $42 billion in 18 months (at least that's what they tell us).
The Democrats are citing wording in state law which allows them to pass a tax bill as long as it doesn't raise revenues. So...follow me here...I think I've got this right...they plan to remove some taxes and replace them with other taxes plus fees. Then they'll raise the fees, which can be done with a simple majority.

What kind of fees are we talking about? A 13-cent extra fee on every gallon of gas, a 3/4 percent hike in sales taxes (fees?), and a 2.5 percent surcharge on personal income in 2009. A surcharge, not a tax, even though the money comes out of your paycheck and goes to the state. http://www.cnbc.com/id/28300618



Do you know how much we pay in gas tax? In Oregon it is $0.433 per gallon (plus optional county taxes of a few cents) which includes a federal excise tax of $0.184 per gallon.
http://www.californiagasprices.com/tax_info.aspx


Crude Oil Falls a Second Day, Heading for Record Annual Decline
Dec. 31 (Bloomberg) -- Crude oil fell for a second day, heading for a record annual drop, on speculation that U.S. fuel stockpiles are increasing as the recession cuts demand.

Crude oil for February delivery fell $1.20, or 3.1 percent, to $37.83 a barrel at 9:15 a.m. on the New York Mercantile Exchange. Futures are down 61 percent this year, the first annual decline since 2001 when oil fell 26 percent, and the biggest drop since trading began in 1983.

U.S. gasoline stockpiles probably rose 1.7 million barrels in the week ended Dec. 26, from 207.3 million barrels the week before, according to the median of 13 analyst estimates.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLVcprSLiRhU&refer=home