Friday, March 7, 2014

We Need More Labels!


Everyone is familiar with the standard nutrition label.

You'll find them on pretty much everything you eat, you may soon find them on restaurant menus.

Perhaps we need a tax and duties label.

Let's say you buy an Armani suit that is worth $500.  That suit has an import duty of 10% plus $0.386 per kilogram.  I did a little research and found out that the average suit weight 1.6 pounds so our total is now $550.28

Let's say you bought it in Orange County, California. What is everybody's piece of the pie?

Federal: $50.28
State of California: $33.02
Sheriff: $2.75
D.A: $2.75
Orange County: $4.12
City: $4.12
Roads:  $1.38
Health & Welfare: $2.75
State Optional Fund: $1.38
Orange County Transportation: $2.75

Total Tax and Duties: $105.30
Total Price to Consumer: $605.58

So, on top of whatever percent you are paying in income tax, tack on another 21.06% for every suit you buy.

How'd you like to see that label on everything you buy?

We could even get a little more creative and add in the other costs associated with that $500.00 suit.

Fuel Taxes for transport.
Road Taxes for mileage.
Regulatory burdens.

And so on and so forth.

How big of a piece of your pie is the government actually getting?

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