Avgas availability

"RG" == Robert M Gary writes:
RG In a free market lack of
RG capacity or supply results in higher prices. Now, if the
RG democrats try to cap prices or increase the tax on gas the
RG restricted capacity would result in shortages.

An increased tax would result in a higher retail price...how would
that create a shortage again? Wouldn't it tend to reduce consumption
thereby alleviating the shortage?

--
"Better to be a geek than an idiot."

It depends entirely on where the tax is applicable. If the tax is on income
and revenue (windfall profits revisited?) then it might curtail production
because of less capital to reinvest and less incentive to run at capacity.
If the tax is an excise and attached at the pump, then the industry
producers will see little impact to their revenue, but you and I will pick
up the load. That might result in a reduced demand for fuel, which might
increase availability but that cause and effect often alludes the
population.

--
Jim Carter
Rogers, Arkansas

"Jim Carter" wrote in message
...
It depends entirely on where the tax is applicable. If the tax is on
income and revenue (windfall profits revisited?) then it might curtail
production because of less capital to reinvest and less incentive to run
at capacity. If the tax is an excise and attached at the pump, then the
industry producers will see little impact to their revenue, but you and I
will pick up the load. That might result in a reduced demand for fuel,
which might increase availability but that cause and effect often alludes
the population.


??? Tax??

(Talking to yourself??)

Nope - responding to Bob Fry's post immediately preceding mine.

--
Jim Carter
Rogers, Arkansas
"Matt Barrow" wrote in message
...

"Jim Carter" wrote in message
...
It depends entirely on where the tax is applicable. If the tax is on
income and revenue (windfall profits revisited?) then it might curtail
production because of less capital to reinvest and less incentive to run
at capacity. If the tax is an excise and attached at the pump, then the
industry producers will see little impact to their revenue, but you and I
will pick up the load. That might result in a reduced demand for fuel,
which might increase availability but that cause and effect often alludes
the population.


??? Tax??

(Talking to yourself??)

On May 16, 4:08 pm, Bob Fry wrote:
"RG" == Robert M Gary writes:

RG In a free market lack of
RG capacity or supply results in higher prices. Now, if the
RG democrats try to cap prices or increase the tax on gas the
RG restricted capacity would result in shortages.

An increased tax would result in a higher retail price...how would
that create a shortage again? Wouldn't it tend to reduce consumption
thereby alleviating the shortage?

If the tax is on marginal profit (i.e. "wind fall tax") the fuel
companies may not be able to produce more than a fix amount of gas
because the cost to provide it (including the new tax) may be not
allow the market to meet the price. I.e. if supplier and demander
can't agree on any price there is no supply.

-Robert