When you purchase groceries or tires or most any other product from a local business you, receive a receipt. On this receipt is the sub-total or the amount you pay for the product. Then there is the tax, normally the amount and the rate is provided. In Marysville for instance, a receipt for taxable household goods at a local store would show about 8.8 percent. People should know how much of their money goes toward the goods and how much goes to funding the government. There are several businesses, however, that do not show this tax rate. Gas stations for example, do not print the tax rate on their receipts. If you ask the attendant what the tax portion of your purchase is, most cases they will not know. This is not the businesses fault.
In the next two years our state will achieve the privilege of being in the top three most expensive tax states on gas. Every year, the federal, state and local governments seek to incrementally raise this tax. When gas prices go up the politicians howl like crazy about collusion and price fixing by “Big Oil,” when in reality, the government makes five to eight times more per gallon of gas than the oil companies.
Their howling is most likely because consumption may drop rather than the price consumers pay. When you purchase a gallon of gas in Marysville your tax rates (rounded) are 50 cents (state), 18 cents (fed) and about 2 cents (local). I can’t verify the local tax easily so it’s a low estimate. Total that up and you have 70 cents per gallon or 24 percent based on $3 per gallon. What would your reaction be if you bought other products and paid a 24 percent tax? I am willing to bet the howling would be in a different direction. Our local politicians however, think you will “like” the tax increase.
Don Thompson
Lake Steven
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