Tax Bites

Americans for Tax Reform Foundation has estimated average prices and taxes imposed on 13 popular targets for multiple layers of hidden taxes.

“Sin” taxes, telecommunications taxes, and taxes on tourists are included in the analysis. While most of these goods and services are subject to specific excise taxes and other charges, the tax “bite” also includes the cost of sales taxes, corporate income taxes, payroll taxes, property taxes, capital gains taxes, unemployment insurance taxes, workmen’s compensation taxes, and other payments businesses must make to federal, state and local governments.

click here for a pdf version of the Tax Bites tabloid

Click on the good/service in the chart for more information on the respective tax bite.

Good/Service	Estimated Average Cost	Estimated Tax Bite Percentage	Estimated Tax Bite per Unit	Rank
Cigarettes*	$4.97/pack	86.71%	$4.31	1
Distilled Spirits	$13.10/ 750mL bottle	79.60%	$10.43	2
Distilled Spirits	(80 proof)	79.60%	$10.43	2
Car Rentals	$52.71/rental	60.60%	$31.94	3
Beer	$4.05/six-pack	56.20%	$2.28	4
Domestic Airfare	$231/trip	55.00%	$127.05	5
Phone - Landline	$49.33/month	51.80%	$25.55	6
Gasoline	$2.77/gallon	51.20%	$1.42	7
Hotel Stays	$97.06	50.00%	$48.53	8
Phone - Wireless	$49.98/month	46.40%	$23.19	9
Cable (Video)	$52.36/month	46.30%	$24.24	10
Firearms	$500	45.60%	$228.00	11
Meals	$32.32/meal	44.80%	$14.48	12
Soda	$.75/can	37.60%	$0.28	13

*note that the tax bite for cigarettes has been re-calculated to reflect the significant increase in the federal excise tax on tobacco, which took effect on April 1, 2009.