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Into one pocket and out of the other

People liked what they heard when Obama promised to reduce the Federal Income taxes for over 50% of American tax payers. Sounds good but where will the money be coming from? How about the stuff you buy? An interesting look at common commodities and how much of their purchase price is taxes of one form or another. From the Center for Fiscal Accountability:

Tax Bites
Americans for Tax Reform Foundation has estimated average prices and taxes imposed on 13 popular targets for multiple layers of hidden taxes.

�Sin� taxes, telecommunications taxes, and taxes on tourists are included in the analysis. While most of these goods and services are subject to specific excise taxes and other charges, the tax �bite� also includes the cost of sales taxes, corporate income taxes, payroll taxes, property taxes, capital gains taxes, unemployment insurance taxes, workmen�s compensation taxes, and other payments businesses must make to federal, state and local governments.

They have a nice graphic available for download as a PDF) The top five?

• Cigarettes - 86.71% of the purchase price is a tax
• Distilled Spirits - 79.60% of the purchase price is a tax
• Car Rentals - 60.60% of the purchase price is a tax
• Beer - 56.20% of the purchase price is a tax
• Domestic Airfare - 55.00% of the purchase price is a tax

I knew alcohol and tobacco were taxed but I didn't have a clue that it was that large a percentage. Domestic Airfare? Yeah, the airports don't exactly pay for themselves (in spite of the food prices) but still... Posted by DaveH at April 15, 2009 7:40 PM