President Obama’s fiscal year 2015 budget proposes to increase taxes on individuals by over $820 billion and on businesses by about $500 billion, for a total of over $1.3 trillion in new taxes over the next ten years....
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- Contest: How Much Does this Basket of Treats Cost after Taxes? (UPD...
Contest: How Much Does this Basket of Treats Cost after Taxes? (UPDATE: CONTEST IS NOW OVER)
Update: This contest is now closed.
Today we release our new Special Report titled "Overreaching on Obesity: Governments Consider New Taxes on Soda and Candy," which highlights unequal taxation of certain foods like soda and candy that are said to contribute to obesity. As today is Halloween, we decided it would be fun to have our friends guess what the after-tax price of this basket of food products would be.
The person with the closest guess will win a spook-tacular prize package from the Tax Foundation! Submit your guess by November 11, 2011.
Assume that these products were purchased in Chicago, Illinois. Price quotes are taken from Peapod.com (exclude special discounts), but figure in all applicable taxes in Chicago, IL. Assume that the proposed state-level soda excise tax (as detailed in the new report) has been voted into law. Assume that the price base remains constant (do not adjust for demand changes that sometimes accompany tax increases).
Products in the basket:
- AriZona® Green Tea with Ginseng and Honey, 1 Gallon
- Store Brand Lemon Lime Soda, 2 liter
- Store Brand Cola, 12 pack
- Starbucks Frappuccino® Coffee, 4 pack
- Twix® Caramel Cookie Bars, 8 count, 4.56 oz. bag
- Snickers® Bars Fun Size, 11.1 oz. bag
Which brings the total pre-tax price of the basket to $20.74. What would be the after-tax price?
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