Tax Bites


How Much Do Taxes Increase the Cost of Goods and Services?

Americans for Tax Reform Foundation and its Cost of Government Center reveal how much the average price of popular goods and services is driven up by government. The goods and services highlighted are popular targets for revenue-hungry lawmakers who impose “sin” taxes and other punitive costs on products and industries. As such, most of these goods and services are subject to specific and discriminatory excise taxes but the tax “bite” also includes the cost of sales taxes, corporate income taxes, payroll taxes, property taxes, capital gains taxes, unemployment insurance taxes, workers’ compensation taxes, and other payments businesses must make to federal, state and local governments, the costs of which are ultimately passed onto taxpayers.

Tax Bites of Communications, Defense, Drink, Food, Lodging, and Tranportation

Click here for a pdf version of the Tax Bites tabloid.

Good/Service Tax Bite Tax Bite as % of Cost
Cigarettes
Distilled Spirits
Gasoline
Beer
Airfare
Cable
Firearms
Cell Phones
Hotel
Car Rentals
Meals Out
Soda
Smokeless Tobacco
Wine
Candy
Vaccines
OTC drugs
Prescription drugs
$4.19/pack
$7.15//750ml bottle
$1.59/gallon
$2.07/six-pack
$158.37/one-way trip
$29.05/month
$204.10
$18.90/ month
$63.52/stay
$12.47/rental
$10.99/meal
$0.21/can
$2.40
$6.20/bottle
$0.21
$16.07
$2.52
$20.04
75.17%
56.31%
44.52%
44.33%
43.77%
42.51%
40.82%
40.04%
39.39%
38.77%
30.84%
27.98%
62.45%
32.74%
30.81%
29.67%
28.80%
25.21%

 

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