Gasoline Tax Rates

Gasoline prices continue to rise so I thought it would be useful to look at the gasoline taxes in each state. New York has the highest gasoline tax rate of $0.49 per gallon while Alaska has the lowest gasoline tax rate of $0.08 per gallon. On top of the state and local gasoline taxes, the federal government taxes gasoline at $0.184 per gallon. The average gasoline tax when adding in the federal taxes is $0.488 per gallon.

For Tax Foundation data on state gasoline tax rates see this link

For state, local, and federal gasoline taxes depicted on a map see this link

Citizens for Tax Justice Report: Policy Options to Raise Revenue

Citizens for Tax Justice published a report today explaining why Congress should raise revenue by eliminating tax loopholes and tax subsidies. The report goes on to outline eleven specific options to raise revenue and how much revenue could be raised from each option. The table below briefly describes each option and shows how much revenue could be raised from each option.

For the complete Citizens for Tax Justice report see this link

Taxation of Meals in Major US Cities

The Tax Foundation published a study of the taxation of meals in major US cities. Meal taxes apply to prepared food eaten at a restaurant or take-out food, but sales of groceries are exempt from sales tax in 30 states. The Tax Foundation posits two justifications for the high taxes on prepared food. First, it can be argued that the high taxes on prepared food are a form of luxury tax aimed at higher-income people. Second, it can also be argued that the taxes are a form of tourism tax, because tourists are likely to be eating prepared food for most meals. The results of the ten US cities with the highest meal taxes are displayed in the table below. For the complete Tax Foundation report with meal tax data for the top 50 US cities in terms of population see this link.

More Importance Being Placed on the Tax Aspects of Corporate M&A

Ernst & Young reviewed the tax aspects of corporate M&A in its second annualĀ Global M&A tax survey and trends. 57% of the tax directors surveyed by Ernst & Young said their companies place more importance on the tax aspects of corporate M&A than they did three years ago. 56% of the tax directors said that the range of tax matters evaluated in a transaction has increased compared to three years ago. Also, 2/3 of these companies now consider the effects of tax planning in their valuations. The results of Ernst & Young’s survey show a positive trend for those working on the tax aspects of corporate M&A deals.

For a summary of the survey results see this link

For the complete report of the survey results see this link

IRS: Standard Deduction vs. Itemizing: Seven Facts to Help You Choose

The IRS released a tax tip about choosing between the standard deduction and itemizing one’s deductions. The tax tip lists seven facts to consider when choosing between the two types of deductions, and the seven facts are:

  1. Qualifying expenses
  2. Standard deduction amounts
  3. Some taxpayers have different standard deductions
  4. Limited itemized deductions
  5. Married filing separately
  6. Some taxpayers are not eligible for the standard deduction
  7. Forms to use

For an explanation of each of the seven facts see this link