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You've just dropped your tax return by the post office. You're about to breathe a huge sigh of relief. Not so fast! The nightmare isn't over on April 15.
If you stop for a $10.00 pizza on your way home the taxman will grab $3.80-worth in sales tax, property tax, unemployment insurance tax, federal payroll tax, federal, state, and local income tax, and worker's compensation tax.
If you're flying the next day, the taxman is waiting to pocket $40.00 on every hundred you spend on an airline ticket. And he's in the hotel lobby when you land, snatching $43.00 on every $100.00 of the hotel bill.
A recent study shows that 30 taxes imposed on the production and sale of a loaf of bread account for 27% of the retail price. Americans for Tax Reform says total taxes on a new car reach 45% of the showroom sticker price.
So, next time a pollster asks what your biggest beef is with the government, just remember: Taxes now eat up 38% of the gross income of the average family. Medieval serfs paid less than that to the lord of the manor.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
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