I might be wrong, but I was under the assumption that tax on tax is illegal in this country. According to the Board of Equalization, it's not. Right now, in California, for each gallon of gas, there's 18 cents state tax, and 18 cents Federal tax included. On top of that, the state charges the regular sales tax of 8.25%. I was told this tax is charged after the state and federal taxes. So, if gas costs $1/gallon, then we're paying 8.25% on $1.36, not $1. Does this sound wrong to anyone else? If not, can someone explain why it's not?
2006-12-12
05:22:41
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7 answers
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asked by
jowarge
2