New Jersey lawmakers are set to vote on an agreement between Democratic leaders and Republican Gov. Chris Christie to raise the state’s gas tax by 23 cents a gallon to pay for road, bridge and transit work.
The Assembly and Senate have scheduled votes for Wednesday on the deal that Christie reached with Assembly Speaker Vincent Prieto and Senate President Steve Sweeney last week.
If passed, the agreement would raise New Jersey’s gas tax — the second-lowest in the nation — from 14.5 cents to 37.5 cents a gallon. That would still be lower than neighboring New York and Pennsylvania, but higher than Alaska, which at 12.25 cents a gallon has the lowest gas tax in the country.
The deal would establish a $2 billion-a-year transportation trust fund over eight years and cut the sales and estate taxes, while also offering veterans and low-income residents tax credits, among other measures.
The legislation is up for a vote three months after the transportation trust fund expired and amid a shutdown of transportation projects ordered by Christie. Authority for the fund to pay for transportation work ran out without a deal in place to secure capital projects
The sales tax would go from 7 percent to 6.875 percent by January and to 6.625 percent by July 2017. The legislation would also phase out New Jersey’s estate tax, changing the threshold from $675,000 to $2 million in 2017 and eliminating it completely in 2018.
The deal also includes raising the earned income tax credit, which helps low-income residents, from 30 percent to 35 percent for the current tax year, as well as increasing the tax exclusion on retirement income over four years to $100,000 for joint filers. Veterans would get a personal exemption for state income taxes under the measure.
The impasse between Christie and lawmakers dates to late June and centered on what the governor called “tax fairness,” or cutting other taxes while raising the gas tax. He and Prieto reached a deal, but it was rejected by the Senate, which never voted on it.
Now, Christie and leaders call the new measure, which would boost the transportation trust fund from $1.6 billion to $2 billion a year, a compromise.
Not everyone is happy about the deal, though. Both Republicans and Democrats have spoken out against the deal.
Democratic state Sen. Ray Lesniak, who is considering a run for governor in 2017, called the deal “Robin Hood in reverse” because low-income residents would struggle to pay the gas tax. Republican State Sen. Kip Bateman said the cost is not reasonable.
The Associated Press contributed to this article.
A gas tax is a great way to fund roads. It should be limited to funding roads and not be turned into a slush fund for every government program. Like all measures the people of New Jersey should contact their legislators and let them know what they think. They need to know the wishes of their constituents before voting.
I moved out of NJ . One reason was because of the high taxes .I can’t see how anyone can afford to live in that state.
Politicians love any and all forms of taxation that they can dream up to impose on all of us. Even if you have to sustain your life by having a burger and fries for lunch at a fast food restaurant you will be charged a tax percentage on that sustenance to keep living. What nonsense! We have let these political thieves take control of our lives and wallets for far too long. We need a new party to be formed of people who really care for others and aren’t just out to get elected, tax people to death, serve a few years in elected office and then retire to a luxurious multi-million dollar lifestyle paid for by poor voters.
You all had your chance with the TEA PARTY but people are too damned stupid to get behind something that’s truly useful and effective. They’d rather cut their own throats by believing the the liars in the media and the LYING POLITICIANS who have everything to gain by crushing potentially potent organizations like The TEA PARTY. ….. They’re in cahoots right now…. doing everything in their power to defame Donald Trump. If they don’t like that he used the tax laws that THEY CREATED FOR THEIR CRIMINAL BUDDIES TO AVOID PAYING TAXES, then they should CHANGE THOSE CRIMINALLY CONSPIRED LAWS…. WHICH IS PRECISELY WHAT TRUMP IS PROPOSING. EVERYONE pays 15%. Businessman, Corporation or Company employee. Fair taxation for EVERYONE. You don’t like that someone else has more money than you do? Invent something and GET RICH and pay 15% of your profit…. not 50%…. THEN ANOTHER 50% ESTATE/DEATH TAX ON WHAT YOU’VE ALREADY PAID TAX ON. HOW COULD YOU FOOLS SIT STILL FOR THAT ONE????? The true criminals are the liars in the media and the politicians who know how stupid the public is and use their stupidity to hurt anyone who would smarten them up and help them get rid of the criminals.
All you morons are getting just what you deserve…. Twenty TRILLION dolllars in National Debt, most of which was squandered on special interest pipe dreams that made the political contributors millions and millions of dollars before their wondrous pipe dream and our billions in borrowed tax money vanished in a puff of smoke. Forrest Gump almost had it right. Stupid is Stupid.
Our national and states budgets aren’t bloated because of paying for roads, bridges, and infrastructure. In fact these areas have been neglected, and we’re paying the price (crumbling highways, bridges collapsing, bad sewer and water pipes in Flint). Our national debt is not for this reason, but for overpromising on entitlement-type spending. Increasing the budget for infrastructure modernization and repair would also put many people to work on well-paying jobs. We need more spending in this area. Cuts in budget will have to come from the 60% plus that is ‘entitlement’ spending.
Before adding new taxes, a public exposure of how present gas taxes are utilized.
THAT ADDITIONAL GAS TAX IS NOT NEEDED……..IF YOU GET RID OF THE DEAD WEIGHT THAT IS ON PAYROLL, AND GET RID OF THE “DO-NOTHING” EXISTING GOVERNMENT AGENCIES, AND THE HUSBAND & WIVES OF POLITICIANS AND GOVERNMENT OFFICIALS, THERE IS PLENTY, YES PLENTY OF EXISTING MONIES TO FUND ROAD REPAIR. RAISING THE GAS TAX WILL RAISE THE COST OF FOOD & OTHER NECESSITIES. MANY NEIGHBORING STATES WOULD DRIVE TO JERSEY TO GAS UP……..& PERHAPS SPEND MONEY HERE. NOW, THEY WON’T BOTHER & GAS SALES WILL DROP & ALSO AFFECT OTHER AREAS OF COMMERCE……..WE HAVE IDIOT LEADERS & WISE GUYS IN OFFICE.
Again on the backs of middle class Americans. We get no breaks!
The unintended result of raising the tax on gasoline will be a severe drop in gasoline sales in New Jersey. Many motorists from surrounding states go out of their way to take advantage of the lower gas prices in NJ. There will also be a fall in sales taxes on merchandise in gas station stores, local fast food restaurants, etc. New Jersey will be sorry it ever tampered with the tax. The answer is, of course, is to cut government spending on wasteful programs, of which there are many.
For NJ & NY not CA, we pay OUR fair share & then some.
why should a gas tax help pay for mass transit. let those pay more to fun mass transit.