Quote:
Originally posted by Mmmm, Burger (C.J.)
The economics above is faulty. If supply were fixed then price would continue up ad infinitum. It doesn't because there are marginal imports of gasoline that meet increased demand. The tax incidence depends on the elasticities of demand and supply--no tax would increase revenues for oil cos. and decrease prices for ocnsumers.
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The economics is faulty if you take him literally, but it's quite easy to envision under present circumstances that eliminating the tax would benefit oil companies far, far more than consumers.
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“It was fortunate that so few men acted according to moral principle, because it was so easy to get principles wrong, and a determined person acting on mistaken principles could really do some damage." - Larissa MacFarquhar
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