The Tax Bite
on Everyday Products….BREAD

In the process of production from farm to the store, the government imposes about 30 taxes on a loaf of bread.

These include federal income taxes, state income taxes, state and local property taxes, federal payroll taxes, sales taxes, capital gains taxes, unemployment compensation taxes, workmen’s compensation taxes, retailers’ excise taxes, business license taxes and fees, utility taxes, and state wheat farmer checkoff taxes.

A recent study by Price Waterhouse found that these taxes accounted for 27.2 percent of the price of a loaf of bread, not counting sales taxes paid by the customer.

So out of the average price of a loaf of bread of $1.09 in 1995, about 30 cents goes for taxes, plus another 5 cents on average for sales taxes. 

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