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NJ Senate faces decision on Christie’s gas tax proposal
Christie, a Republican, reached a deal with the Democrat-controlled State Assembly earlier in the week to raise the gasoline tax in exchange for a lowered sales tax that would save New Jersey residents billions.
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New Jersey lawmakers have passed a almost $35 billion budget, sending it to Republican Gov. Chris Christie.
While Senate President Steve Sweeney did not post the Transportation Trust Fund (TTF) package for a vote in the senate today, a number of groups issued statements of either support or concern for the package ahead of the senate session where it was believed the fate of the gas tax would be decided.
But Sweeney, a likely Democratic candidate for governor next year, said Friday that there are only two or three senators from both parties who would vote for the plan.
And depending on the actions of New Jersey lawmakers over the coming days, it’s possible that the Garden State could overshadow the rest by implementing the largest gas tax increase in recent memory-and the state’s first in 26 years.
Christie lashed out at Democrats who run the Senate and blamed them for not backing his plan, which passed the Assembly on Tuesday.
The NJEA, as well as the Communications Workers of America, which represents government workers, also feared that the sales tax drain will hurt their push for a constitutional amendment requiring the state to make its annual payment to the pension systems.
If fully phased in, the total tax cuts being considered equal about $850 million per year compared to $1.4 billion in gas tax hikes. New Jersey has the steepest property taxes in the country and ranks third-highest for combined state and local taxes, according to the Tax Foundation. As the Wall Street Journal reported, it’s very much up in the air whether or not the state senate will support the plan-and their support is needed for the proposal to pass. Christie’s order says that work paid for with federal funds may continue and that any jobs deemed “absolutely essential” can continue.
The bill comes at the same tame as a proposed cut in the state’s sales tax from 7 percent to 6 percent.
“I’m disappointed Governor Christie has made a decision to act so quickly to freeze so many important transportation projects”, Sweeney said in a separate statement to the press Friday.
Christie had opposed another agreement to raise the gas tax while cutting the estate tax, raising a credit for low-income earners and establishing a charitable tax deduction.
Other drivers said the state has mishandled the situation for years.
“It is vital that we continue our regular program of road and bridge resurfacing and reconstruction, to ensure the safe efficient movement of people, goods, and emergency personnel in and around Union County and New Jersey”.
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Prieto also referred to the Transportation Trust Fund as “our economic engine to the future”, touting the new eight-year, $16 billion concept as what’s necessary to fulfill all of New Jersey’s needs.