Posted on 02/27/2012 12:16:16 PM PST by Kaslin
State taxes are on top of Federal Taxes.
For example, Gasoline in Alaska:
State Tax = 8¢/gal
Federal Tax = 18.4¢/gal
Total Tax = 26.4¢/gal
Here in Indiana we pay sales tax on gasoline, so the higher the price, the more tax we pay.
Funny I’ve never heard anybody say “windfall tax profits”
Note also, in Florida it is only 4¢/gal of the fixed state gasoline tax, but there was over 30¢/gal in variable taxes also added on to the price. See the right hand column and explanations.
So in Florida, at the time this was assembled, the tax was:
18.4 + 4 + 30.4 = 52.8¢/gal.
But that 30.4¢ is a variable term that goes up when the price goes up.
Indiana has some company in that market.
Several states now include percentage based taxes that automatically raise more money with higher prices.
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