-Caveat Lector-
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Date sent: Mon, 14 Jun 1999 11:56:17 -0700
From: [EMAIL PROTECTED]
Subject: Release: hidden taxes
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NEWS FROM THE LIBERTARIAN PARTY
2600 Virginia Avenue, NW, Suite 100
Washington DC 20037
World Wide Web: http://www.lp.org/
=======================================
For release: June 14, 1999
=======================================
For additional information:
George Getz, Press Secretary
Phone: (202) 333-0008 Ext. 222
E-Mail: [EMAIL PROTECTED]
=======================================
Hidden taxes cost every American
$2,462 a year, new study reveals
WASHINGTON, DC -- If you think you pay too much in taxes, wait
until you hear about the "pickpocket taxes" that every American
unknowingly pays -- a whopping $2,462 per person per year, the Libertarian
Party said today.
That number comes from a new study by the National Taxpayers
Union (NTU), which figured out that Americans fork over $657.5 billion a
year in "stealth" federal, state, and local taxes. That's in addition to
the income tax and most sales taxes.
"This study has uncovered an epidemic of 'pickpocket taxes' --
sneaky taxes, fees, and licensing costs that allow government bureaucrats
to help themselves to your wallet, quietly and furtively," said Steve
Dasbach, the party's national director. "If you think April 15th is bad,
this new study reminds us that for the government, every day is Tax Day."
According to the NTU study, the average American will pay
$2,462 this year in taxes that are "not explicitly clear" to the person
who is paying them.
For example, Americans pay:
* $18.7 billion a year in import taxes -- which drive up the
cost of a wide range of imported items, including peanut butter (143%),
girdles (24%), and brooms (32%). That works out to $70 per person every
year.
* $10.7 billion in travel taxes -- such as hotel rooms, rental
cars, and airline tickets. According to NTU, a family of four traveling
from Chicago to Orlando to stay at Disney World for five days would be hit
with $150 in travel taxes.
* $215.3 billion in corporate taxes. Since corporations treat
taxes as just another cost of doing business (and pass that cost on to
consumers) every American pays $806 a year to cover his or her share of
state and federal taxes on companies like Wal-Mart, General Electric,
Microsoft, and General Motors.
* $58.9 billion in gasoline taxes. Ever wonder why gas costs so
much? It's because even though the price of gas dropped by 23 cents
between 1980 and 1996, state and federal gas taxes jumped by 27 cents
during that same time. Annual cost per person: $220.
* $12.6 billion in government licenses, covering every
occupation from hairdressers to bartenders to amusement park operators.
Passed on to the consumer, licensing fees cost every American $47 a year.
* $230.2 billion for your employers' share of payroll taxes.
Those are government-mandated taxes such as Social Security and
Medicare that businesses have to pay for each employee -- but are
ultimately paid by the employee in the form of lower wages. Annual cost
per person: $862.
* $11 billion in telephone and electricity taxes. In the case of
telephones, every customer pays a 3% excise tax, as well as a "Universal
Service Fee" and the "Gore Tax" to connect schools to the Internet. Those
costs (and others) add $41 per year to your telephone and electricity
bill.
The bottom line: $657.5 billion a year in "pickpocket taxes" --
which help push the overall tax burden on the average American to 42%.
"These hidden taxes are like termites: Quietly eating away at our
financial security," said Dasbach. "Fortunately, Libertarians have the
cure: We would treat these stealth taxes like we'd treat any dangerous
pest -- first expose them, and then eliminate them."
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