Gas prices are often a topic of conversation, but usually for less-than-pleasant reasons. Whenever the subject appears in the news, it is most often because prices have become outrageously high. However, this article will take a different approach. Have you ever wondered why gas price tickers include a 9/10 of a cent at the end? It started nearly a century ago but remains to this day for surprising reasons. Great Depression Decisions The 1930s were a time of great economic uncertainty. The stock market crashed in 1929, and the federal government took extensive measures to balance the budget. Among these was the Revenue Act of 1932. This law introduced several tax hikes, including a more than 20% increase in estate and personal income taxes. However, it also introduced a one-cent tariff on gasoline and fuel oil. While this may not seem like a lot in today’s currency — the average cost of a gallon of gas now is around $3.53 — back then, it was a significant burden on motorists. After all, the average price of a gallon of gas in 1932 was just $0.18, so a one-cent tariff represented a more than 5% increase in price. In today’s money, it would be equivalent to a $0.22 tax per gallon of gas. In 1933, the gas tariff accounted for 8% of the federal government’s tax revenue. Fractional Prices Gas station owners paid the new tariff when purchasing their fuel from suppliers, but they had the option of paying the tax themselves, in full or in part, to take the hit in place of their customers. This is where fractional prices first came into play: Gas station owners would advertise that they were paying, say, half of the one-cent tariff on gasoline, which means their prices would only increase by 5/10 of a cent. Over time, the tariff became less relevant, but fractional prices remained. This has largely contributed to the psychological aspect of paying 9/10 of a cent rather than a full cent — the same thinking behind charging $1.99 rather than $2 for a product. The Strange Gas Law Why the 9/10 of a Cent?
‘OVERRULED’ TURNS INWARD Meet the Partners
“OVERRULED” recently turned its microphones inward, giving our listeners insight into who we are at Scott Vicknair, how we got here, and plans for the future. Meet our partners Brad Scott and David Vicknair. From humble roots in Houma and Thibodaux, respectively, they discuss their journeys from childhood dreams to building their current law practice and the “maybes,” “what-ifs,” and “who knows?” their paths might have taken. From Brad’s first career as a day trader to David’s original intent of coaching football, follow their journeys into the legal worlds of estate/probate and personal injury, with all the challenges, stories, triumphs, and trials they have experienced and learned from. These experiences have shaped their future goals, which they share, along with some of their favorite resources for both business and life, including
recommended reading and hobbies. Join us and learn about the driving forces behind Scott Vicknair and why Brad and David always #FIGHTFORTHEWIN!
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