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