Reality Remix #57 -- Predictability

Gasoline prices in the U.S. have come tumbling down thanks to the big sell off in the price of oil. This already saved American drivers $14 billion in 2014, or about $115 per household according to AAA. Even bigger savings are expected in 2015 as the average American could save $234 at the pump this year, if current oil prices persist. However, a rebound in the price of oil isn't the only thing that could put the brakes on the potential savings Americans might see at the pump this year. That's because state and federal governments are oogling those dollars as the lawmakers from both sides of the isle are contemplating raising gas taxes in order to pay for highway improvements.

Why there is growing chorus for increased gas taxes
The Federal gas tax hasn't moved from its perch of $0.184 per gallon in more than 20 years. However, with gas prices plunging there is a new openess in Washington to raise the tax to pay for increased infrastructure investment, which should create additional jobs. Many argue that the increase is necessary because the volume of gasoline being used in America has weakened over the past few years. As this next chart shows supplies of gasoline peaked last decade.