Monday, January 9, 2017

Rising Taxes Will Sweep Across Most States In The Coming Years

State governments, entities that cannot print money or borrow endlessly like the Federal government (or at least that's they're assumption), will be raising taxes, even as the economy declines, rather than reduce their influence or what's rightfully theirs. This sense of priority will increase the conflict between the public and private sector in the coming years. While voters will demand fairness from a Republican dominated public sector, they'll be disappointed when it takes the form of rising taxes across the board. This disappointment could sow the seeds of a legitimate third party candidate in the 2020 or 2024 election.

Headline: New Taxes Send The Price Of Gas Soaring In Some States

If your wallet felt a little lighter during the first week of 2017, it wasn't your imagination. In addition to paying off those Christmas bills (more on refund anticipation loans here), consumers across the country are paying more in state and local taxes - including gas taxes. Drivers in seven states are paying more for gas in 2017.

In my own state of Pennsylvania, drivers saw an increase of more than 15% at the turn of the calendar: that's an increase of 7.9 cents per gallon to 58.3 cents per gallon in state taxes alone. The hike is due to a 2013 law aimed at improving infrastructure in the state; to help pay the bills, turnpike tolls are also going up (for progress on road work near you, check out PennDOT's handy-dandy interactive map). When you add the federal gas tax of 18.4 cents per gallon, it boosts the total tax to 76.7 cents per gallon, making it one of the most expensive states in the country to fill up at the pump.



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