(See: Bob Brinker & Ben Bernanke On High Inflation )
I am interested in what others are paying for gasoline around the country and how much of that is sales tax. Here in Taxifornia, the high prices on gasoline are great news for the government. A 20 gallon tank of gas is over $6 in sales tax!
- What are you paying for gasoline?
- How much of that is sales tax?
- Do you know the other taxes?
- Price before Tax x (1.0 + Tax Rate) = Final Price
- Price before Tax = Final Price / (1.0 + Tax Rate)
for an 8% tax rate:
- $1.00 = $1.08 / (1.0 + 0.08%)
- Los Altos, California on 4/26/08
87 Regular gasoline $3.979 / gallon
Sales tax rate 8.25%
Before tax price $3.979 / (1.0825) = $3.676
Sales Taxes per gallon $3.979 - $3.676 = $0.303
Sales Taxes on 20 gallons 20 x $0.303 = $6.06
(So THAT Is how Arnold will try and balance our $16B deficit!)
Sales Taxes don't include the gasoline taxes!