Summer is here, and the desire for adventure can be felt throughout the country. Since the thirst for wanderlust can only be quenched through travel, it is only natural that families are packing their bags and hitting the road for some much needed R&R.
It’s only a matter of time, however, before the car runs out of gas, causing every red-blooded American in transit to wonder why the cost of fuel is so high.
This chart reveals the reason: state and federal taxes. Makes sense now, doesn’t it? (Photo Credit: IJReview)
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The federal excise tax is 18.4 cents per gallon, and the rest of the taxes are particular to each state and vary greatly around the country.
The two states with the biggest taxes: New York at $0.505 and California at $0.4978. The two states with the lowest taxes: Alaska at $0.124 and New Jersey at $0.145.
- 10% for refining costs and profits
- 10% for transportation and retailing costs and profits
- 13% for taxes and fees
- 67% for crude oil
One thing to notice: The total costs and profits for everything except the oil is just slightly larger than the amount that goes to state and federal taxes.
Well, they need to be paid somehow, right? What better way than to make travel less affordable for American citizens, immigrants, and tourists?
Photo credit: Travis Rigel Lukas Hornung (Flickr)