RE: Gas and Go smoke em if you got em. Taxes.
October 11, 2021 at 12:47 pm
(This post was last modified: October 11, 2021 at 12:49 pm by Brian37.)
(October 11, 2021 at 12:35 pm)arewethereyet Wrote: Let me see if I can simplify the tax thing.
On a pack of cigarettes, or other tobacco products, there is an excise tax that is a flat rate that is different from state to state usually based on the item sold...as in there is a $1.41 excise tax on a pack of 20 cigarettes in the state of Texas.
That excise tax is added to the pack price which is then taxed with sales tax. As the price of cigarettes fluctuates (that means goes up and down) the total amount of the pack of cigarettes changes because sales tax is a percentage that includes state, and possibly, local taxes.
Ok and?
The issue is which is bigger in size?
14 cents in tax by government?
Or, 3 or 4 or 5 dollars that the private company gets after you pay that tax on each gallon, if we are talking about gas. $1 dollar tax per pack of smokes in government tax, vs the 5 or 10 dollars the private company profits off of. What is the difference?
Again, I am not good at math. But I am pretty sure that 14 cents is lower than 3 or for or 5 dollars.
