Saturday, April 10, 2010

When Less is More

Government regulations and higher taxes often result in less income for the government, not more. The current administration's "redistribution scheme" is not really about "fairness" but power and control. The wealthiest people in the U.S. already pay the bulk of our taxes, but lower rates than many middle class workers (increasingly many low income people pay no federal taxes at all). This happens to state governments too. This is from a very handy website for truckers, Weigh Station and Truck Safety, but if you're going to be travelling, check out your state by clicking on the map.
    "Ohio used to have a split speed limit for most of the state's freeways- 65 for cars and 55 for trucks. Many truckers thought this would never change but now most of Ohio's roadways have just one speed limit for both cars and trucks.

    The split speed limit ended first up the Ohio turnpike when the turnpike authority changed it to 65 for cars and for trucks. Toll rates increased dramatically between 1982 and 1999. Many truckers refused to pay the high rates. Governor Taft and the Ohio Turnpike commission decided to lower the tolls and increase the speed limits to draw the trucks back onto the turnpike from the side roads. Part of the plan to get truckers to use the Ohio turnpike more was increasing the enforcement of weight laws on the side roads."
Not every state's rates have been updated within the last 2 years, but if you want to see which states are in the biggest tax trouble, just take a look at their fuel taxes--the more they charge, the deeper in debt! California and Illinois are broke--in fact, they're busted flat and stole from their state pensions! The new health care mandates will put even more pressure on state governments, so I don't know who's left to steal from--the neighbors--Indiana? Nevada?
    The California fuel tax rate is $0.476 per gallon of diesel. This rate includes a 6% state sales tax and a 1.25% county tax.

    The Illinois fuel tax rate is $0.413 per gallon of diesel fuel. This includes a 6.25% sales tax. Local governments can levy additional taxes. The city of Chicago levies an additional $0.1275 tax. [Note: and the roads are crappy!]

    The Ohio fuel tax rate is $0.28 per gallon of diesel fuel. The fuel tax is supposed to increase $0.03 per gallon every 2 years according to legislation passed in 2003.

    The Kansas fuel tax rate is $0.27 per gallon of diesel fuel. This rate includes a 1 penny per gallon environmental fee.

    The Texas fuel tax rate is $0.20 per gallon of diesel.

    The Maine fuel tax rate is $0.295 per gallon of diesel. This fuel tax rate includes $0.07 per gallon of diesel for the Coastal and Inland Water Fund and $0.06 per gallon of diesel for the Groundwater Fund.

3 comments:

Anonymous said...

Low income workers do pay federal FICA. Some of the almost 50% who don't pay income tax, are well off--lots of deductions, credits, etc. and therefore feel beholden to the government.

"In recent years, credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17."

Norma said...

Yes, I should have said income tax. The top 10% of earners pay 73% of the income taxes. The bottom 40% pay nothing--and I don't think this is a good plan.

mdoneil said...

I paid just $1324 less in income tax this year than my salary as a librarian in 2004.

I could almost afford my own librarian now.

Of course I have had to stop going to the little sandwich shop around the corner because money is scarce and it closed because of dwindling business.

I had to switch to a chain drug store as our local pharmacist had to close up shop, but I guess that is progress.

But at least Federal employment is growing and they can count on their retirement. I wonder if I can get a federal job.