CDR: RE: Voluntary Mandatory Taxes

[Trei, Peter]

Tim wrote

> At 10:35 AM -0700 9/12/00, Marshall Clow wrote:
> >	Refinery:		17.2 [ I'm guessing this includes raw 
> >oil costs ]
> >	Retailer:		 4.2
> >	VAT:		12.64
> >	Duty:		50.89
> >
> >	Total		84.9 [ this is the price at the pump ]
> >
> >that's 74.8% tax, folks.
> 
> Which is of course what the original article was saying.
> 
> A nit, but "74.8% tax" may be misleading to some. It suggests a tax 
> rate of "only" about 10 times the normal sales tax (normal in the 
> States, for ordinary goods). In fact, the 75% is of course 75% of the 
> final price. Or, roughly a 400% tax on the original commodity.
> 
> For example, imagine a Jaguar XK8 costing $60K plus $240K in taxes. 
> 75% in taxes would suggest 60K plus 45K. The oil situation is 400% in 
> taxes.
> 
A nit on a nit: This is ~300% tax, not ~400%. Consider: 10 pounds worth
(to the refiner/dealer) of petrol yeilds s the British government about 30 
pounds of taxes. ie, 300% of the cost of the item.

It's still mind-boggling that a nominally free people will put up with this
kind
of organized theft.

Peter 

> Welcome to statism.
> 
> 
> --Tim May
>