Transportation Futures: Overview of Transportation Funding

An Institute on Taxation and Economic Policy analysis shows the purchasing power of the Federal fuel tax has lost 28% from 1997 to 2011 through a combination of inflation and vehicle improved fuel efficiency as shown in the graphic below1. Increases in the state fuel tax rate have offset some of these impacts, but continuation of fixed rates will erode the purchasing power due to the combined impact of inflation and fuel efficiency.

Read the full report here