The price of gasoline is down about 25 cents a gallon here in Northern Virginia from what it was at the start of the year, so I’m even more annoyed when I have to pay taxes to buy gas.
Why? Because the gas tax is a flat amount (38 cents a gallon here) rather than a percentage. The end result is that a greater percentage of my gas purchases go toward taxes rather than the gasoline I’m buying.
At the beginning of the year, I was pay 12.8 percent of my gasoline bill to the government. Now it’s up a full percentage point. If gas prices drop to $2 a gallon (I realize it’s just a fantasy in today’s economy), then I’ll be paying the government a whopping 19 percent in taxes on each gallon.
Alternative fuels, anyone?