tboy said:
Glad to see you're coming around Moraff, but as for your GST example. Prices DIDN'T drop because most retailers kept their prices at the same level after the FST was dropped and just kept the difference. (I know this for a fact because I worked for a major retailer at the time). So yes, just cutting the taxes wouldn't work, they'd have to instill a bill that would indicate that the price per litre would DROP and if it didn't, hefty fines would be levied.
Okay, I should have clarified my statement. Some retail prices dropped (my dad was in the model railroad business at that point and I helped redo all the prices in the catalog) and then crept back up again once the masses lost interest in the story.
Okay, I agree the gov't would have to instill measures to ensure that the price dropped to match the tax reduction. But, since we accept a 20% increase in price to match a 1% cut in supply, what's to stop the companies from throwing out another lame excuse or two and bump the price back up again?
tboy said:
As for a pricing structure that may cause the government to lose money should the price rise would be something like a negative tax: ie: if the price per litre is below $1.00 per litre, they get 45% combined taxes. Should the price rise above $1.00 per litre the tax rate drops 1% per every 5 cents. I could feasibly see something like this because gas is such a necessary item to fuel (no pun intended) the economy. Of course No government would ever set a limit to the amount of tax they collect, that would be just too good for the population!
Ah, okay I see where you were going with that. But I imagine people were finding hard to grasp since it is hugely unlikely we'll ever see such a scenario.
tboy said:
What I COULD see would be the automakers putting pressure on the government to do something because vehicle sales will slump further than they are now. I mean the auto industry relates to hundreds of millions of dollars to the economy which relates to taxes paid.
I think it is argentina or brazil who pay 35 cents per litre and import all their fuel????
But are sales of larger vehicles slumping? (I don't know) Judging by the number I see on the roads it doesn't feel like it. But you're right, the auto industry would be a huge voice.
But as to coming around, I've never said I LIKED paying more for gas, I just disagree with boycotts and the like and am nervous about the gov't sticking their noses in since past history shows that they are pretty good at fucking things up so that their cure is more expensive than the disease and/or useless.
Take the new idling by-law in Hamilton. It's a good idea, but they have one officer to enforce it. What're your odds of getting caught? And then they went and exempted the HSR buses from the bylaw. So the gov't wasted time and our money to put a by-law in place that will only be respected by those who already don't sit in their cars idling the day away.