The Tax Bite
on Everyday Products….ELECTRICITY

Government sees your electric power bill as something you cannot avoid, and they’re right, of course. They love to impose taxes on it. In addition to sales taxes, states impose gas import taxes or other surcharges on your bill. As a result, on average 11.2 percent of what you pay for your electric power bill goes to state governments for these taxes alone.

For the average customer, this adds up to about $206 per year. But that’s only the beginning. Of the remaining funds you pay for the utility, roughly another $266 per year on average goes for taxes as well.

Consequently, about one-fourth of what you pay for your electric bill goes to the government in taxes rather than for the electricity.

For the average customer, this amounts to about $472 per year. Overall, the government collects almost $50 billion per year on taxes paid through your electric bill alone.

(Note: If the Senate were to ratify the proposed Global Warming Treaty advocated by former Vice President Al Gore, many experts believe that the above numbers would be more than doubled.)

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