The Tax Bite
on Everyday Products….PIZZA

Everybody likes pizza, even the government. In fact, they like it so much, they don’t mind taking a slice or two out of yours.

In most states, consumers pay sales tax on the pizza, averaging 5 percent. But that is only the beginning.

Out of what the consumer pays for pizza, the producer must pay federal income taxes, state income taxes, federal payroll taxes, unemployment insurance taxes, workmen’s compensation taxes, local property taxes and any local income taxes. Altogether, these taxes consume about 33 percent of the sale price.

Counting the sales tax paid by the consumer, this means about 38 percent of what you pay for pizza goes to the government in taxes.

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