You will often see me refer to Shadow Taxes. Shadow taxes are Taxes you pay in the cost of the product without realizing it as a consumer. The price of a gallon of Gas has as few as 11 and as many as 15 taxes built into the product.
Example of your gallon of gas.
1. Federal Lease Fee
2. State Lease Fee
3. Drilling Permits and fees
4. Enviromental impact Study
5. Sales Tax on those “permits” cause we don’t call them a tax
6. Drilling Costs (With Labor Taxes equalling 30% of the labor cost, plus required insurances and bonds)
7. Tranportation Cost to reach a pipeline and what it called a “load tax” + “Road Tax” Trucking requirements which is a another branch of 10 or so taxes.
8. Refining (you can just imagine the taxes and permits and regulations on this branch but we will just call 1 step in our example.
9. Another Load Tax for tranporting Gas, PLUS there is a deal called Shrinkage while transporting as the liquid cools on the road @250 gallons disappears that truckers have to “buy” Its a cost/tax
10.NOW you get your State Gas Tax
11.NOW you get your Federal Gas Tax
12. PLUS YOU GET a sales tax built in.
Records have shown time and time again that while the oil companies make BILLIONS their net profit is 7% of gross That means the other 93% was LOST due to TAXES and expenses you didn’t see because it was in the Shadows. Thus SHADOW TAX. AKA VAT TAX