Cashtalk has been around for about a year now! We just wanted to thank everybody who has had the time to contribute an article or post a comment. And we also wanted to thank the people that read this site, too.
Our mission to help people learn more about money and business is going strong. We'll continue posting interesting information about business and economic life in the United States and ways to save and be smart with money. If you would like to contribute to Cashtalk, just send me an email or post a comment and I'll get in touch with you.
Friday, April 28, 2006
What Percentage of the Gas Price is Tax?
It seems like everywhere you turn, you're taxed for something. I'm sure if you added up all the taxes you paid throughout the year, it would come close to 50% of your income (unless you're lucky enough to be in the higher tax brackets, in which case it would be higher, too). One of the taxes consumers pay is the gasoline tax; both the federal and state (and sometimes even local or city).
This site shows how much you in your state are paying for the gasoline tax. Every state has a different system for taxing gasoline. Some have extremely high flat rates. Others have deceptively lower flat rates but then tack on a percentage sales tax. Check out the chart and find out how much you're paying in your location.
You can also compare the amount of tax you're paying with the amount of profit a gasoline company makes per gallon sold. ConocoPhillips makes $0.07 a gallon of profit. This site explains how much the companies pay for the crude oil and how much it costs to refine it. Most of this accounts for the rest of the price of gasoline.
So next time you're at the pump and thinking you're being bilked, remember who is doing the work to get you your gasoline, and remember who's taxing you to fill that car of yours. And don't forget that either when you hear your local politician want to punish the refined oil industry, too.
This site shows how much you in your state are paying for the gasoline tax. Every state has a different system for taxing gasoline. Some have extremely high flat rates. Others have deceptively lower flat rates but then tack on a percentage sales tax. Check out the chart and find out how much you're paying in your location.
You can also compare the amount of tax you're paying with the amount of profit a gasoline company makes per gallon sold. ConocoPhillips makes $0.07 a gallon of profit. This site explains how much the companies pay for the crude oil and how much it costs to refine it. Most of this accounts for the rest of the price of gasoline.
So next time you're at the pump and thinking you're being bilked, remember who is doing the work to get you your gasoline, and remember who's taxing you to fill that car of yours. And don't forget that either when you hear your local politician want to punish the refined oil industry, too.
Average Gas Prices by County
This is a great site that takes the average gas prices per county and then shades them a certain color on a map of the United States. You can also click on individual counties to get further analysis.
With the increasing price of gasoline, it is important to watch those pennies! I think it's hillarious (and a bit sad) that the most expensive places in the U.S. are California and New York, two states with tough restrictions on gas quality and excessive taxes on gasoline. Yet another casue of government crowding out.
Both California and New York have had predictions or indications of slowing economic growth. New York's method of taxing gasoline (by the dollar instead of by the gallon) makes it the highest gas tax in the U.S. Hurting consumers in this way is certainly no way to boost or even maintain a strong economy. It is my own prediction that both of these states with already high costs in other things, like housing and commodities, will continue to see a slow down in their own economies as people try and find solace in other states.
With the increasing price of gasoline, it is important to watch those pennies! I think it's hillarious (and a bit sad) that the most expensive places in the U.S. are California and New York, two states with tough restrictions on gas quality and excessive taxes on gasoline. Yet another casue of government crowding out.
Both California and New York have had predictions or indications of slowing economic growth. New York's method of taxing gasoline (by the dollar instead of by the gallon) makes it the highest gas tax in the U.S. Hurting consumers in this way is certainly no way to boost or even maintain a strong economy. It is my own prediction that both of these states with already high costs in other things, like housing and commodities, will continue to see a slow down in their own economies as people try and find solace in other states.
Monday, April 24, 2006
Balanced Budget and Federal Deficit
Walter Williams discusses, very briefly, two worrisome aspects of the U.S. economy in an article last week. He talks about the federal deficit. He claims that people say the deficit is a way to borrow against the future, but he says different. Really, the government potion of spending ($2.4 trillion) is "crowding-out" private investment and spending. He cites some interesting examples.
He also doesn't like the idea of a balanced budget. If the government spent $6 trillion and taxed us $6 trillion to pay for it, would that be better than a $2.4 trillion spending paid for by $2 trillion in taxes (leaving a $0.4 trillion deficit, of course)? His solution (and mine because I agree with him) is to cut spending overall, but we all know that isn't likely to happen.
He also doesn't like the idea of a balanced budget. If the government spent $6 trillion and taxed us $6 trillion to pay for it, would that be better than a $2.4 trillion spending paid for by $2 trillion in taxes (leaving a $0.4 trillion deficit, of course)? His solution (and mine because I agree with him) is to cut spending overall, but we all know that isn't likely to happen.
Tuesday, April 11, 2006
Outsourcing the Drive-Thru
I can see it now: a mob of McDonald's employees protesting outside of a suburban McDonald's. Protest signs reading "Don't Eliminate Jobs" or "Super-size me but don't Outsource me!"
McDonald's and CKE Restaurants (owners of Hardee's and Carl's Jr.) are experimenting with national call centers of highly trained customer service specialists that would take your drive-thru order the next time you visit their restaurant. They are banking on the fact that someone in Santa Maria, CA can do a better job than the person standing only 100 ft from you the last time you pulled up for a Happy Meal. And not only better, but faster. And in the fast food business speed translates into better service and more profit.
This may or may not work. The article from the New York Times mentions some problems with transmission quality between the pilot restaurants in Hawaii and the call center in California. Often the operators have to ask the customer to repeat themselves. I'm not sure how this is much different from the current setup but it may irk customers and cause bad will.
I have to say that I'm excited about the idea, though. I love the idea of companies becoming more efficient and therefore passing the cost savings on to the customer. But what if they don't pass them on? How could they not? In a competitive environment (like fast food) if you can get a cost edge on a competitor, you are most likely going to want to increase customers by decreasing prices. If your competitor can't match your efficiencies and therefore prices, they will go out of business. That leaves more customers for the innovative restaurant. And that means more profit. We'll just have to see how this turns out.
McDonald's and CKE Restaurants (owners of Hardee's and Carl's Jr.) are experimenting with national call centers of highly trained customer service specialists that would take your drive-thru order the next time you visit their restaurant. They are banking on the fact that someone in Santa Maria, CA can do a better job than the person standing only 100 ft from you the last time you pulled up for a Happy Meal. And not only better, but faster. And in the fast food business speed translates into better service and more profit.
This may or may not work. The article from the New York Times mentions some problems with transmission quality between the pilot restaurants in Hawaii and the call center in California. Often the operators have to ask the customer to repeat themselves. I'm not sure how this is much different from the current setup but it may irk customers and cause bad will.
I have to say that I'm excited about the idea, though. I love the idea of companies becoming more efficient and therefore passing the cost savings on to the customer. But what if they don't pass them on? How could they not? In a competitive environment (like fast food) if you can get a cost edge on a competitor, you are most likely going to want to increase customers by decreasing prices. If your competitor can't match your efficiencies and therefore prices, they will go out of business. That leaves more customers for the innovative restaurant. And that means more profit. We'll just have to see how this turns out.
The Economy Continues to Grow Stronger
Two good pieces of news the other day: 211,000 jobs were added to the economy in March and consumer confidence is up.
Who Pays the Highest Taxes?
The internet is a wonderful thing. So much information is available, if only you can find it. I stumbled across this website the other day and thought I should share it with you. It is quite relevant at this time due to the impending tax deadline of April 17th.
The U.S. Census Bureau posted the receipts of taxes of the United States and the amounts taken in by all of the 50 states. It then divided the amounts received by the population of those states to give us the amount that each person in the state paid. Which state has the highest per capita taxes? Vermont. Followed closely by Hawaii and Wyoming. California is actually below Alaska, which I found surprising.
Of course this begs the question, "Which state has the lowest per capita taxes?" The answer proabably isn't as startling: South Dakota, followed by Texas.
My state, Iowa, paid $1,938.85 per person. This is $253.42 less than the average in the U.S. of $2,192.27.
Check out the site here and find out if you are in a high-tax state or not.
The U.S. Census Bureau posted the receipts of taxes of the United States and the amounts taken in by all of the 50 states. It then divided the amounts received by the population of those states to give us the amount that each person in the state paid. Which state has the highest per capita taxes? Vermont. Followed closely by Hawaii and Wyoming. California is actually below Alaska, which I found surprising.
Of course this begs the question, "Which state has the lowest per capita taxes?" The answer proabably isn't as startling: South Dakota, followed by Texas.
My state, Iowa, paid $1,938.85 per person. This is $253.42 less than the average in the U.S. of $2,192.27.
Check out the site here and find out if you are in a high-tax state or not.
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