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Assuming half your taxes goes to the DoD and half the DoD budget goes towards protecting the oil trade, gas costs about about $30 per gallon if you make $150k:
by NoblePublius 8y ago
Assuming half your taxes goes to the DoD and half the DoD budget goes towards protecting the oil trade, gas costs about about $30 per gallon if you make $150k: (40% to fed govt x .5 x .5 ) / 1000 gallons gas per year.
- creato 8y agoThe first assumption is way off [1]. The second assumption also is suspect. It is probably more correct to say that half the DoD budget goes towards protecting all trade, not just the oil trade. Another (unstated) assumption is that oil fuels a lot more than just personal vehicle gas consumption. I don't know where that 1000 gallons of gas per year statistic comes from though. 40% in taxes to the federal government is also very high. The top marginal tax rate is 35%, and 150k isn't close to getting you into the top bracket, let alone by a significant enough factor to consider that an effective tax rate. Don't get me wrong, I strongly believe there should be larger subsidies to alternative energy sources to counteract the externalities of fossil fuels. I just think this particular estimate is wildly misleading. 1. https://en.wikipedia.org/wiki/File:U.S._Federal_Spending.png https://en.wikipedia.org/wiki/File:U.S._Federal_Spending.png
- NoblePublius 8y agoYou’re right. Trump cut my taxes.