IPI Publication Press Release
IPI Policy Report - # 160

Related Publication Title:
Hidden Taxes: How Much do You Really Pay?
Released by Bryan Riley, Eric V. Schlecht, and Dr. John Berthoud on 08/29/2001
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Press Release (08/29/2001)
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Americans Paying $2,462 a Year More in Taxes Than They
Think: Many ‘Hidden’ Taxes Not Exposed to Taxpayers

For IMMEDIATE RELEASE
Wednesday, August 29, 2001
Contact: Sonia Hoffman, (972) 874-5139 or shoffman@ipi.org


Dallas, TX – Americans are unaware of the $657.5 billion they spend every year on ‘hidden’ taxes, making it impossible for them to evaluate whether they’re getting their moneys’ worth from the government, according to a new study released by the Institute for Policy Innovation (IPI).

“When you couple income taxes with ‘hidden’ and other taxes, the total tax burden is equal to 56 percent of annual personal consumption spending,” said Dr. John Berthoud, president of the National Taxpayers Union and author of the IPI Road Map to Tax Reform study. “If Americans knew this – which they don’t – we might see another Revolution.”

A few of the hidden taxes exposed in the study include:

· Fuel taxes. Taxes on gas don’t appear on your receipt, but 43 cents of a $1.48 gallon of gas last August went to taxes. On average, Americans spend $220 a year paying for the gas tax.
· Travel taxes. Thinking of a six-day, five-night vacation in Disneyland with your family of four? Think again, or plan to pay $165.10 in taxes on airline tickets, hotel rooms, and a rental car.
· Employers share of payroll taxes. As small business owners know, employers don’t really pay half of payroll taxes. Instead, they’re forced to lower an employee’s salary to cover the costs associated with these taxes, which adds up to about $862 per year per employee.
· Insurance premiums. Imagine it. You’re actually taxed to have automobile, homeowners, and other types of insurance. Taxpayers pay approximately $34 a year for the taxes on insurance.

Berthoud adds up all of the existing hidden taxes and finds that the average U.S. citizen pays $2,462 every year to cover them.

Continues Berthoud: “Americans need to be able to form an opinion about the taxes they’re paying, and the best way – and, in the long run, the only way – to accomplish this is through a fundamental overhaul of our current tax system.”
This information is from a new IPI report “Hidden Taxes: How Much do You Really Pay?” For further information, call Sonia Hoffman at (972) 874-5139 or email shoffman@ipi.org.

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