Gas prices will go over 5$. Why? Because government needs money. The higher the price the more tax revenue they rake in. The longer the economy is in the toilet the higher the price of living will become. Come on folks, this is Gerald Celente 101 here.
Your notion that government revenues will increase based on gas prices is completely wrong. The amount government obtains from gasoline taxes is based solely on usage, NOT
The current Federal tax is 18.4¢ PER GALLON
. In fact, historically (and theoretically), as gas prices increase, revenue from gas taxes decrease
, as consumers tend to use less gas as prices increase. Since tax revenue is based on a percentage of usage (per gallon), and not on overall price, revenues rise and fall based solely on how much people buy/use, NOT
the price per gallon.
HAL 9000 (aka Milton Friedman Jr.)