maineguy,
You're right about taxes being higher, I really didn't want to go further than I did into the politics of it. But proportionally, it's is about the same as it has always been, figuring in inflation and other factors. (The pump price-including taxes-is actually cheaper today if indexed for inflation, than it was back during the oil crisis of the 70's.)
Plus, as you suggest, the states have identified this as another cash cow. States like NY charge higher gas taxes to solve state budget shortfalls.
In the end, supply would be greater and prices lower, if they would increase refining capacity. Not to mention that this would protect us better from the OPEC price fluctuations. But then, why would a monopolist industry want to increase supply to lower prices if they are already making a killing?