BBC logic - High tax is good for us as it softens price rises

[DimPrawn]

Some economists advance another theory - that high fuel taxes might be good for the economy overall.

Many motorists are struggling with fuel prices at their current peak, but the UK has not been afflicted by the same driver anguish as the USA.


If you compare the graphs of prices at the pumps in both countries, America's has sharp lines and points, Britain's oil price fluctuates in rather less aggressive curves.

And that's because the UK's price moves are buffered by high fuel tax.


Here's how.


Say for sake of illustration that the price of a gallon of petrol in Highfueltaxland is 25p and the tax on a gallon is £1. That makes petrol at the pumps £1.25.


Now say the price of petrol doubles to 50p. The driver at the pump in Hightaxland pays £1.50 - an increase of 20%.


The opposite extreme is Zerotaxland. There when the cost of oil doubles from 25p pence to 50p, the cost as the pump doubles too - sending a shock through the economy.


It hurts all the more because the Zerotaxland motorist hasn't budgeted for high fuel costs.

So there you have it folks, Gordon is protecting us from sharply rising commodity prices by drowning them in tax.

[EternalOptimist]

So there you have it folks, Gordon is protecting us from sharply rising commodity prices by drowning them in tax.

I like this idea. New solution to lifes ills, knock a nail into your head and you will never worry about catching a cold ever again.

[Lucy]

Or pay all the doctors the same amount nomatter how rubbish they are, don't give people a choice about which ones they see and they think they are getting a good 'free' health system.

[NickFitz]

Why is it described as "BBC logic"? Isn't it the logic of "some economists", as reported by the BBC?

[DimPrawn]

Why is it described as "BBC logic"? Isn't it the logic of "some economists", as reported by the BBC?

Because they don't say which "economists" actually believe that leftie bulltulip.

[NickFitz]

Because they don't say which "economists" actually believe that leftie bulltulip.

Do you expect a list? There must be many thousands of economists in the world (God help us all), so they can hardly be expected to specify exactly which subset adhere to any particular theory.

[sasguru]

Do you expect a list? There must be many thousands of economists in the world (God help us all), so they can hardly be expected to specify exactly which subset adhere to any particular theory.

Now now Nick you know the rules: ranting, mindless prejudice and pretend expertise are the rules. Don't you try your reasonableness on us.

[Cyberman]

So there you have it folks, Gordon is protecting us from sharply rising commodity prices by drowning them in tax.

Give me zerotaxland where petrol is under half price and my standard of living would be so much higher. Just what do we get from taxes that we now work until June for ??!! I know...... membership of the EU, a world class NHS, and rubbish collection occasionally !!

[Marina]

Because they don't say which "economists" actually believe that leftie bulltulip.

Maybe not (I haven't checked), but a pound to a pinch of pig tulip says it's gurning monkey-face NuLab apologist Evan Davis

[DimPrawn]

Now now Nick you know the rules: ranting, mindless prejudice and pretend expertise are the rules. Don't you try your reasonableness on us.

Rub the magic lamp and another thick Socialist twerp appears.