Lonely Man of Cake

March 7, 2007

Crazy Taxes

I enjoy sharing with folks some of the more creative ways various legislative bodies have cultivated in order to take our money. The illegal drug tax was probably the most creative/ironic/offensive one. That petrol in Israel is charged a 100% excise tax also gets points for creativity.

Here is the story of a 79 year old fellow, David Wetzel, who is a biodiesel pioneer and activist. His converted 1985 Volkswagen Golf has consumed, according to Wetzel’s records, 1134 gallons of waste vegetable oil. A short while ago, Wetzel was visited by two agents from the Illinois Department of Revenue, who demanded that Wetzel pay retroactive “gas” taxes (about 20 cents per-gallon) on his bio-diesel, and file for “special fuel supplier” and “receiver” status from the state.

While the sum of the taxes is somewhat negligible, and Wetzel complied with that request, the principle behind Illinois’ harassment of Wetzel is downright offensive. Never mind that restaurant owners paid tax on the vegetable oil when they bought it for its intended use. (Can taxes even be levied on used goods?) Wetzel’s car was able to achieve 45 MPG utilizing a domestically produced fuel which is estimated to produce 60% less emissions than regular petrol.

Could it be that the US government fears fuel efficient vehicles because it means less revenue from gas sales? If so, then Wetzel wants equal treatment for hybrid cars: the miles traveled on the electric part of the motor should be assessed and taxed as well!

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