Quote:
Originally posted by Tyrone Slothrop
What you're saying here doesn't make sense to me, though perhaps the failure is mine. Assume that producers cannot substantially increase production beyond current levels. If the taxes were to disappear tomorrow, why would they not pocket that margin and leave their prices the same? If they have limited ability to bring refined gasoline in from other countries, then maybe that affects the price a little on the margin, but there can't be much capacity there.
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Where is the tax levied? When the gas leaves the refinery, or at the point of sale?
