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Taxing taxes! Isn't that illegal???

Every time I go to buy cigarettes at the store, I end up paying sales tax (7.5% in California!). (Yes, I'm a social leper...) I don't object to paying the taxes so much, as I do paying taxes on taxes! Yes, that's right, a good portion of the cost of cigarettes is tax, and now since the new .50 per pack increase of taxes as of 1/1/99, a much more significant portion!

The problem arises when I pay the sales tax. I pay sales tax on the entire amount of the cost of the cigarettes! Taxes and all! Does anyone know how to spell illegal?

I'm sure that it was just an oversight by underpaid overworked government employees, and by now, I'm sure that one of them has already caught the mistake and is sending me a check in the mail right now for my tax overpayment... right?