Californians Hit With Billions In Extra Taxes
As we all know from personal pain at the pump, gasoline prices have skyrocketed and it is unclear when driving Californians will begin to see relief at the pump. I recently spoke with a friend who lives in Florida, and the price that she pays for a gallon of gas is about 10 percent less than I do, which caused me to wonder why there would be such a disparity. About this time I had a chat with longtime FR reader Larry Venus, who had done some research and pointed out to me that California motorists currently pay an average of 7.9 percent sales tax per gallon! Well, it doesn’t take much thought to realize that if the state’s tax on gasoline is not a flat dollar amount, but rather a percentage, that the amount of taxes on $5 a gallon has is a whole lot more than taxes on a $2 gallon. Actually, getting out the FlashCalc, by my reckoning, when gas was a couple of bucks a gallon, I paid 15 cents per gallon in taxes. Using a $5 per gallon figure for comparison (even though I am starting to forget when gas was that cheap), my tax liability per gallon is a staggering $37 cents. This kind of tax is insidious, making us pay more… Read More