$6.26 for a Gallon of Gas: Poor France
That means I'd have to spend $125 just to fill up my tank.
[Thanks to bafweb.com for the image.]
And in France, just to give you an idea of what we're talking about, the minimum wage is 1,280 euros ($1,856) a month, or 15,360 euros ($22,272) a year. And remember, something like 70% of the $6.26 goes to the French government in the form of taxes.
This price (1.14 euros a liter) is a record for France, although one should keep in mind that inflation has distorted our comparison to past prices, meaning that if you were to adjust this price for the lost value of the currency, 1.14 euros may no longer be a record. Still, it's a lot of money for those poor people earning $1,856 a month gross.
As an aside, the French minimum wage comes to about $1,458 a month net of taxes. Yes, that's almost $400 out of their pocket for taxes. And don't forget, the employer pays just as much again (see my next post, where I correct this figure; in fact, I underestimated the employer's part), making the total $800, or 35% (revised upward) of the total amount the employer sets aside to pay this one person. And that's before deduction of any personal income taxes.
Between the elevated payroll taxes and the 70% gas tax, plus the 19.6% TVA sales tax on everything French people buy, no wonder their standard of living is lower than ours--oh yeah, I forgot. They're paying for that wonderful nationalized health care.