Can Christie get tax plan passed?

Republican Gov. Chris Christie has proposed raising the gas tax by 23 cents to 37.5 cents a gallon.

The increase would catapult New Jersey’s current gas tax of 14.5 cents per gallon from second-lowest in the country behind Alaska to roughly equal that of CT, which has the sixth-highest at 37.51 cents, according to the Tax Foundation, an independent tax policy research organization. But the cuts to general fund taxes (including income, sales, and estate taxes) that key lawmakers are insisting must accompany a gas tax hike would result in a major erosion of funding for education, health care, and the state’s notoriously underfunded pension system.

With backing from Christie, the state assembly passed the bill Tuesday, which would go into effect July 1 if it is signed into law, according to a report by NBC 4.

Given the enormous economic importance of our transportation network, both of these increases are steps forward for these states. The biggest changes include $45 million for a tax credit benefiting seniors, $25 million for the expansion of state-funded preschool and $7.5 million for family planning, which Christie has cut in the past. “We’re reducing a regressive tax – the sales tax – over a two year period at half a percent going then down to six-and-a-half and then to six percent”, Prieto said.

Christie said lawmakers have been complaining for months that he wasn’t engaged enough on the issue.

Republican Whip Scott Rumana, R-Passaic, said Christie’s plan would help suburban districts that have received “subpar” state funding.

“We all know we need the 23 cents in the gas tax, we need to refund the TTF, but we can’t do it by destroying the state budget”, said Weinberg, D-Bergen. The rift between the two legislative leaders was exposed this spring as they struggled to reach an agreement over a bailout package for cash-strapped Atlantic City and highlighted boldly this week in their ongoing disagreement over the Transportation Trust Fund.

But Assembly Minority Leader Jon Bramnick said the deal is solid.

“I’ve never signed a tax increase in seven years as governor”.

New Jersey’s gas price average was at $2.10 this week, according to AAA Mid-Atlantic. The 1 percent sales tax cut would be phased in over three years, with full implementation in January 2018. That bill is nevertheless estimated to raise overall revenue by more than $1 billion in the first year and by between $140 million to $375 million in subsequent years.

The gas tax funds the Transportation Trust Fund, which pays for capital reconstruction and fix of roads and bridges, many of which have fallen into disrepair over the past 20 years.