Options Wonderland

[samaelrocks]

I hope folks don't start comparing what we pay to that in Europe since their taxes inflate the price to subsidize health care. I'd much rather pay $8 per gallon if I didn't have to pay for medical. LOL!

I was talking to a friend of mine that works for Delta yesterday. Spoke about the rising cost of fuel. One point that I believe will be missed is that for example: A plane ticket that's $400 has fuel costs built in to the tune of $50 of said ticket. Fuel doubles so now that $400 ticket is now $450.

As much as I don't like the way we let OPEC boss us around, I believe the media will create the perception that the rising fuel costs is more detrimental to the market than what reality dictates.

I'm not so naive to think people won't feel it at the pumps but on the other side, I think we'll get used to it. It will take the market some time to get used to it as well.


"Impact of fuel tax

"The single most effective measure" that has brought down motorists' fuel use in Europe, however, is taxation, says Dings.

On average, 60 percent of the price European drivers pay at the pump goes to their governments in taxes.

In Britain, the government takes 75 percent, and raises taxes by 5 percent above inflation every year (though it has forgone this year's rise in view of rocketing oil prices, and the French government has promised tax rebates this year to taxi drivers, truckers, fishermen, and others who depend heavily on gasoline.) On August 8, for example, the price of gas in the US, without taxes, would be $2.17, instead of $2.56; in Britain, it would be $1.97, instead of $6.06."

http://www.csmonitor.com/2005/0826/p01s03-woeu.html