TAX
tax is a fee charged by a government on a product, income or activity. Tax can be levied on personal or corporate income; also tax can be levied on the price personal or service. It is people's duty to levy the tax. And the purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and service (e.g street lighting & clearing) people pay taxes to make the living condition better. but sometimes, paying over high taxes can cause some unexpected damage on economy.
High gas prices are usually caused by high prices for crude oil, which accounts for 55% of the price of gasoline. In April 2011, fears about unrest in Libya and Egypt sent oil prices up to $113 a barrel.
Distribution and taxes influence the remaining 45% of gas prices. In May 2011, as oil prices dropped, gas prices stayed high. Why? Commodities traders were concerned about refinery closures due to the Mississippi River floods. Usually, distribution and taxes are stable, so that the daily change in the price of gasoline accurately reflects oil price fluctuations.(http://useconomy.about.com/od/commoditiesmarketfaq/p/high_gas_prices.htm0
Subsidy
A benefit given by the government to the groups or individuals usually in from of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public. for example what is happened in America about the health care which was not actually working so well, patients have to wait for a long time to get the treatment. even people are paying somuch for the tax and government has paid for the hospital and doctors. but still, it can not satisfied for much patients. and in USA, when it is about pet hospital, it is even working better and no need to wait for a long time
http://www.youtube.com/watch?v=cR5KN1O5hVk&feature=related
http://www.youtube.com/watch?v=cR5KN1O5hVk&feature=related
