How much do you pay in hidden taxes?

Hidden Taxes

In October, the average price of regular-unleaded gasoline throughout the United States was $2.25/gallon. Americans have been relatively happy with fuel prices this year. And, as they have fallen, it has helped the economy in a number of ways. But, did you know that you are being taxed over 27.1% on your fuel?

That’s right. The average American pays approximately 49 cents in taxes per gallon at the pump. In other works, the fuel costs $1.76 and you are taxed $0.49, which equates to a tax rate of 27.8%.

Most citizens know there is a gas tax at the state level, but very few know how much it is. Yet, few are aware there is also a federal gas tax; and nearly everyone is oblivious to how those tax dollars are spent. For example, did you know that over 40% of the federal gas tax is spent on earmarked projects, or as we like to refer to it, pork-barrel spending?

The gas tax is just one glaring example of what we call a “hidden tax”.  Hidden Taxes are taxes that the average American does not even realize they pay every time they purchase a good/service.  For example, a gas tax is a hidden tax. Some other example include:

  • “sin” taxes (i.e. cigarettes, alcohol, tanning services, etc.)
  • insurance taxes
  • license fees
  • airline tickets excise tax & security fees
  • telephone excise tax & universal service fees
  • biodiesel fuel taxes
  • environmental & hazardous material fees
  • read more here.

So how much do you think you and your family pays in hidden taxes? Would it surprise you that, according to the Institute For Policy Innovation, the average household pays over $6,000 in hidden taxes every single year?

The federal government enjoys taxing its citizens because they believe that they can spend our money better than we can.  For decades, there has been an ongoing discussion on what government should pay for and how much they should be able to tax.

Unfortunately, the cowards in Washington D.C. only spend time talking about the taxes visible to the American public.  So, while every politician either promises to keep your taxes low, or to only tax “other people,” behind the scenes they are taking $6,000 in taxes from you every single year that you don’t even know about!

We need to end the federal gas tax, and urge states to do the same.  Please contribute to this effort by commenting below and posting this article all over social media.  Please share this article with all of your family, friends, followers, and connections.  And, please discuss the additional information below as well. Thanks!

How hidden taxes affect America
Higher prices on consumer goods & services
Lower consumer confidence (because normal living is harder to afford)
Lower consumer spending (because prices are too high)
Less jobs (result of lower consumer spending)
Higher energy prices (result of utility, gas, and travel taxes)

How gas prices affect businesses
Less hiring (because of less sales)
Higher product costs (because of high corporate taxes, along with higher freight due to gas taxes)
Higher service costs (because of gas, and utility taxes)
Higher fleet costs (because of gas taxes)
Less investment in the business (because of the total hidden tax costs)

How hidden taxes affect YOU?
The average American household will spend $50K in hidden taxes over the next 8 years!
Eliminating hidden taxes would pump $650 billion back into the U.S. economy each and every year.

In the end, people will argue that if we eliminate the hidden taxes, we will just have to raise the visible taxes.  Of course, that eliminates the obvious answer which is to drastically cut spending when we are $20 Trillion in debt.  But, let’s say the worst case scenario is that eliminating the hidden taxes means the visible taxes go up.  Wouldn’t you want to actually KNOW when you are paying taxes, and for what? Merely having that transparency alone would be 100% better than what we have today. And maybe it would cause more people to join the conservatarian movement in order to shrink the government back to an affordable level.

It is time for a new generation of American thought leaders to emerge.  A generation who wants to pay down our debt, shrink government, and spend within our means.  This generation of political leaders need to focus on just three objectives which will return the United States to the small government vision of our Founders:

  1. Protect the Constitution – every… single… word
  2. All other issues are governed by the 10th Amendment
  3. Government should be small, cheap, and vital to protecting our rights

Please join the conservatarian movement.

We need to call out the government when they hide $650 Billion dollars in taxes! We need to call out the government when they spend money outside of Constitutional limits! We need to call out the government when they artificially suppress the economy for their own gain!

NOW is the time to unite behind the conservatarian (Federalist Party) movement.
Are you ready?

Todd Hagopian

Todd Hagopian is a former financial advisor, who is now a Global Marketing Director for a Fortune 300 company. He manages two small mutual funds through Marketocracy.com, in the Biotech and Defense sectors. He currently spends his free time scouring the investment world for Contrarian investments to help him bolster his portfolio's ROI each year, along with writing Conservatarian political articles.