Posted on 02/22/2005 4:22:02 PM PST by groanup
December 6, 1996
Tis' the Season to be Taxed
by Peter Ferrara
Peter Ferrara is general counsel and chief economist at Americans for Tax Reform and an associate policy analyst at the Cato Institute.
On your way to grandmother's house this holiday season, paying taxes will probably be the last thing on your mind. But that is what you will be doing every step of the way.
First, when you get in your car to drive over, you probably don't realize that 45 percent of what you paid for the car actually went to the government in taxes at the federal, state and local levels, rather than to the car manufacturer. When you put gas in the car, you probably don't realize that 54 percent of what you pay for it goes to federal, state and local taxes rather than to the oil producer. For the tires on the car, 36 percent of what you paid goes to taxes rather than to the tire manufacturer.
Once you get to grandmother’s house, you're still not done paying taxes. If you have a little rum with your eggnog, 72 percent of the price paid for it actually goes to the government. The same goes for any other drink made with distilled spirits. If you have a beer instead, 43 percent of what you pay goes to taxes. And even if you just drink soda, 35 percent of what you pay for a can goes for taxes at all levels.
Once you sit down to dinner, the tax man is still there with you. About 31 percent of what you pay for bread goes to the government in taxes, rather than for the bread. About the same would be true for the turkey and the rest of the food. Unless you provide for heat and light solely through the fireplace, you will be paying taxes again. At least 26 percent of your electric bill goes to the government in taxes.
Don't think you can avoid any of these taxes by going out to a restaurant for Christmas dinner. About 28 percent of what you pay for a meal at a restaurant actually goes for taxes, rather than to the restaurant. Nor can you avoid the tax man by staying home and just calling grandma on Thanksgiving Day. That is because about 50 percent of your phone bill actually goes to taxes, rather than to the phone company.
This tax burden arises in part from taxes assessed directly on the consumer, such as state and local sales taxes, liquor excise taxes telephone excise taxes, federal and state gas taxes, food and beverage taxes, and others.
But that is just the beginning. The producer in each case must use what you pay for the product for a heavy tax burden as well, including federal, state and local income taxes, payroll taxes, property taxes, use taxes, unemployment insurance taxes, workers compensation taxes, corporate franchise taxes import fees, and others. In fact, 30 different taxes are imposed on the production and sale of a loaf of bread. The government imposes at least 43 taxes on the production and sale of a gallon of gas.
This is just another part of the excessive burden of taxes working people must bear. Overall, close to half or more of what working people earn ends up going to taxes rather than for their own families. The average family pays more for taxes today than for food, clothing and shelter combined.
This article originally appeared in the Washington Times.
My economist brother in law estimated that the overall government share of GDP was in the 45% range. This discussion was 10 or 15 years ago.More like 30% for federal, state, and local.
I remember that article from when it came out originally. I will definitely print it out for use with the FairTax presentations I do.
Thanks for tripping over it and stopping to pick it up for us. ;-)
I remember that article from when it came out originally. I will definitely print it out for use with the FairTax presentations I do.Be sure to tell you audience that these figures assume we aren't paying income or payroll taxes.
I'm not understanding what you're saying. Well, I THINK I may have a vague grasp of it, but I'm not certain. Please educate. :)
The fairtax (gross payment tax) would just tax all of those taxes not repealed.
Good argument for the Fair Tax.
How? It's revenue neutral and replaces any repealed taxes with an exorbitant sales tax...There's no free lunch.
Not a chance. He's working on the Fair Tax and that's where we need him now. ;-)
Get out there and work on that governor yourselves. Don't let him get away with this crap. It always amazes me that Americans stand in line to vote for a king every 4 years and ignore their governmental and state elections (present company excluded, of course.)
I'm glad I live in a state that doesn't have toll roads. (At least none that I can think of.)
I just got an e-mail from the Devil. They're having snowball fights down there. I agree with you.
Not all of them. But I think you're right about the hidden excise taxes, like on tobacco.
LOL!!! Me, too!
By their calculations, it would be easy to show that 95% of your income is consumed by taxes. They like to count multiple times.
You're looking at the explicit taxes. That doesn't count implicit costs -- federal mandates. Cost of tax collection. Mandated training programs (which have a lot of waste). Diversity programs. These are things which technically are privately paid, but would be rarely done if they weren't forced. Its government involvement by another name, and its inefficient, and its significant.
There's also a lot of embedded taxes you don't catch by adding up the average fed, state, and local rates. Hotel taxes. Road tax on gasoline. Prepared food taxes. "User" fees. And on, and on... and on.
Government needs money they can leaseout all the land they own, and we fight wars for freedom for cost plus 10%.
France gets charged cost plus 40%.
They have to pay upfront in Gold.
"By their calculations, it would be easy to show that 95% of your income is consumed by taxes. They like to count multiple times."
By "their" and "they", I assume that you mean Americans For Tax Reform, which is where these estimates came from.
AG, isn't that Grover Nordquist's group? (Hope I spelled his name right)
Hey Geez, how about NO TAXES NOT ONE, NO Sales Tax, and No Income TAX.
Constitution lays out the method pay the government's bills and debt in no uncertain terms.
Constitution for the United States of America:
- Article I Section 8: "The Congress shall have power to lay and collect taxes, duties, imposts and excises,
to pay the debts and provide for the common defense and general welfare of the United States;"
Government needs money they can leaseout all the land they own
I'd prefer to see the government sell such holdings my self and turn it over to private hands. Why should land be in the government's control beyond that which is necessary to the defense of the nation?
"Think about your humanity. How can live with yourself." Well you can e-mail him. He's from Texas and he's big on eminent domain issues.
http://boortz.com/
LOL!!! Me, too!
That's because like many before you you've decided to pay attention to the facts rather than the rhetoric.
Thanks much - it's in work. Hopefully Neal can get some free time to save the country (and perhaps the world) from a toll road maniac.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.