tag:blogger.com,1999:blog-20855139.post116005941882054304..comments2008-04-16T11:17:04.706-07:00Matt McClintockhttp://www.blogger.com/profile/10586300643759762180noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-20855139.post-33206569866924301522008-04-16T11:17:00.000-07:002008-04-16T11:17:00.000-07:00Yes, the US currently enjoys the low prices, but I think you entirely ignored the issue of externalities. What good is a low gas cost when your entire planet is slowly dying?Johnny Fergusonhttp://www.blogger.com/profile/02604930200017993565noreply@blogger.comtag:blogger.com,1999:blog-20855139.post-1160453256392050602006-10-09T21:07:00.000-07:002006-10-09T21:07:00.000-07:00Your comment ignores the value of the commodity. Economies are the output of oil and gas. That is to say economic output is the direct result of energy inputs. <BR/><BR/>The U.S. taxes on gasoline are lower then anywhere else in the world. Therefore, when it comes to industrial might the U.S. has a lower input cost in comparison to other countries. Any increase in taxes on gasoline will remove the inherent competitive advantages that the U.S. currently enjoys. <BR/><BR/>If the Europeans want to enhance the competitive nature of their economics then reducing the taxes on energy will provide them with an equaling of the costs the americans currently enjoy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20855139.post-1160427834652387692006-10-09T14:03:00.000-07:002006-10-09T14:03:00.000-07:00=========<BR/>Before Tax:<BR/>=========<BR/>Consumer Surplus = A + B + C + H + I<BR/>Producer Surplus = D + E + F + G + J<BR/>External Cost = F + G + H +J + I + K<BR/><BR/>Total Welfare = CS + PS - XC<BR/>Total Welfare = (A + B + C + D + E + F + G + H + I + J) - (F + G + H +J + I + K)<BR/><BR/>Total Welfare = A + B + C + D + E - K<BR/><BR/><BR/>=========<BR/>After Tax:<BR/>=========<BR/>Consumer Surplus = A + B<BR/>Producer Surplus = E + F<BR/>Government Revenue = C + D + H + G<BR/>External Cost = F + G + H<BR/><BR/>Total Welfare = CS + PS + GR - XC<BR/>Total Welfare = (A + B + C + D + E + F + G + H) - (F + G + H)<BR/><BR/>Total Welfare = A + B + C + D + E<BR/><BR/><BR/>**Net Social Gain from Tax = KWilliam Chiuhttp://www.blogger.com/profile/15405304374350964997noreply@blogger.com