Breaking Down The Gas Receipt

J.J. Jackson* | April 27, 2006

UPDATED to Reflect Ronnies Concern over embedded taxes:

I filled up yesterday and I thought that I would share the breakdown with you.

Gallons: 10.327
$/Gal: $2.999
Fuel Sale: $30.97
Total Sale: $30.97

Now, what that REALLY means!

Total Cost of gasoline: $21.67
Total Federal Taxes: $1.86
Total State Taxes: $3.30 ($0.32/gal in PA)
Embedded taxes/compliance costs: $4.13 (16% embedded cost to refining per Figure 5.1 pg 54 “The FairTax” Book by Neal Boortz & Congressman John Linder)

Total % in Taxes Paid: 30% Inclusive, 43% exclusive!

And for comparison (assuming $0.09 profit per gallon):
Total Profit To Oil Company: $0.93

What I think we need to do (although I hear this is illegal in some if not all states) is start buying gas like we buy other goods like groceries. That means instead of posting the price with tax included, post the price WITHOUT tax and line out each tax on the receipt.

How much you want to bet that politicians won’t like that idea all that much?

Do-Gooders: How Liberals Hurt Those They Claim to Help (and the Rest of Us)

(Book)

Authors:Mona Charen
Manufacturer:Sentinel HC
Released:29 December, 2004

The Deep Hot Biosphere : The Myth of Fossil Fuels

(Book)

Authors:Freeman Dyson, Thomas Gold
Manufacturer:Springer
Released:May, 2001

Contributor's website: http://www.libertyreborn.com

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