Federal Gas Tax Wanes
Matthew Yglesias writes:
Federal income tax brackets are “indexed” to inflation in order to prevent “bracket creep” by which real taxes would just rise year after year. But the federal gasoline tax is levied in terms of cents on the gallon and is not indexed, meaning that every year we don’t raise the tax the real value falls every year:
Tags: Gas Tax
Interesting graph. The higher gas tax periods correspond to the salad years of middle class income growth.