Hidden Taxes

10 HIDDEN TAXES YOU ARE PROBABLY PAYING...
Washington's Hidden Taxes
Brian Wingfield, 07.25.07, 6:00 AM ET

Washington, D.C. -
There is an old joke--attributed, of course, to Mark Twain--about the difference between a taxidermist and a tax collector: The taxidermist takes only your skin.

But of all the fees levied by the notorious taxman, the most unpopular are those that are hidden. We don't mean the frustrating taxes you see added to the end of your cellphone bill at the end of each month (though those can be maddening). We're talking about those that are simply not apparent to the average consumer.

In Pictures: 10 Hidden Taxes You're Probably Paying

Take, for example, the gasoline tax. Ever scratched your head wondering how much Uncle Sam is taking when gas prices spike? The answer (regardless of price fluctuations): 18.4 cents on every gallon that you purchase. When coupled with state and local taxes and fees, the average American pays 45.8 cents per gallon in gas taxes alone, according to the American Petroleum Institute, the industry group that represents big oil companies. That's about 15% of the current nationwide average price of gas, $3.06 per gallon.

But excise taxes like the gas tax aren't the only place for taxes to be secreted away. A favorite hiding place is the tax code itself. In fact, in her annual report to Congress last year, IRS National Taxpayer Advocate Nina Olson said lack of transparency in the tax system was among the most serious problems encountered by taxpayers.

"[T]he IRS sometimes updates its procedures and guidance without [in a timely manner] making them available to the public," her report said. No wonder so many people are confused about how much they owe.

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10 HIDDEN TAXES