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I just read a question about the amount of taxes paid by Exxon. How about the taxes on BIO-FUELS?Did you know?
I recently bought a machine for the conversion of used, clear vegetable oil to bio-diesel. But did you know that I'm responsible for paying the TAXES on the fuel that I MAKE? I have to pay the state highway use taxes on each gallon, and the federal gasoline tax on each gallon, in order to not be violating the law. Seems a littel like double taxation to me, adn therefore illegal, and I refuse to pay this. But did you know if you make your own fuel you are SUPPOSED to pay taxes on it? I paid taxes on the conversion chemicals, and the restaurant paid taxes on the purchase of the oil. To have me pay taxes on their combination is double taxation, and is prohibited by the Constitution. But there was a notice with the machine that had a warning to that effect from the federal government. Just another example of Liberal Democrats and the Big Government putting their fingers in everything. My car will run on moonshine. If I make corn liquor should I have to pay taxes on liquor AND gas too?
The federal tax credit for Bio Diesel is $.50 per gallon. But to get it you have to pay the federal tax on gasoline and the state higway use taxes. Combined, and added to the $1.49 it costs on average to produce a gallon of bio-diesel, it would equal roughly what I'm paying at the pump for petroleum diesel fuel. So why bother sending $2,500 on a piece of equipment, $200 on a drum of one chemical, and $140 on a box of another, plus the time to collect 50 gallons of clear veg. oil, and about 2 DAYS worth of work to make it, only to end up paying the same? Hardly seems worth it. Think I'll let Uncle Sam send the revenue ers after me like they did my Grand-Daddy back in the 40's, hehehe!
6 Answers
- Anonymous1 decade agoFavorite Answer
There is still sales tax on gasoline, which does not count as the embedded taxes for the highways. But I understand your point, and I wouldn't pay more taxes either.
I thought about making an ethanol still. Those can be made for about 500 dollars, and virtually any car after year 2000 can be converted to use it.
for the person who mentioned the alcohol being illegal.... it is legal if you get an inexpensive permit, which allows someone to make up to 10k gallons a year for personal use.
- 1 decade ago
I was surprised to find that out the other day. I was watching some program on television and the owner of a chain of restaurants who had converted his vehicle to use vegetable oil pointed out that he has to declare each gallon he uses and pay a tax on it.
It is idiotic and obscene on the part of our government.
If you are caught distilling, you will face jail time, even if you are producing the alcohol as a fuel and not for consumption. I don't agree with this one either.
- mamadixieLv 71 decade ago
Now we begin to get a clue about why our gas prices are so high. The guy at the corner service station has to pay all this too, and he gets no tax credit. He has to make a profit to make it all worth it, so we pay him more.
- Anonymous1 decade ago
you can make it for off highway use. Also you are eligible for $1.00 per gallon Federal credit.
Source(s): www.biodiesel.org - Robert JLv 61 decade ago
Any taxes that are placed on a corporation go right to the product they sell. We all pay for the taxes, not the company being taxed.
- dwnduboisLv 41 decade ago
I'm thinking it's a perfect example of CAPITALISM. Liberals would say go ahead and do your thing. the capitalists have to get their hands in your pot of gold.
