Quote:
Originally Posted by Ronald Pagan
It depends on the elasticities of demand and supply how much the tax is passed down to the consumer. In the case of gas, where demand is relatively inelastic, most of the tax incidence will be passed onto the consumer.
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I get the economics. It's the Liberal-nomics I don't get. I don't mean that to be a shot, everyone has spin. I'm just trying to get through it.
The discussion and positioning in the east when I was there was that the green shift will not cause gas prices, or really any prices to rise. It will simply transfer money from big oil and the west to fund programs and spending.
Generally the eastern media is no friend of Harpers and often a big friend of the libs. So maybe this is their spin, not the party's position.