Dopey and Sleepy on Tax Policy


.
And that’s how tax policy is formed in New Jersey – under deadline based on dodgy numbers with no time (or inclination) for even the slightest review which, in this case, would show:

Raising the gas tax from 14.5 cents to 37.5 cents per gallon will likely cost the average New Jerseyan more than lowering the sales tax from 7 cents to 6 cents will save.  Assuming 20,000 miles driven per year with a car averaging 15 miles per gallon it would come to an extra $307 which would be offset only if you bought $30,700 of items subject to sales tax.  The story goes on:

The governor argued that “20 percent to 30 percent of the gas tax, by best estimates, will be paid for by out-of-staters” whereas the sales tax “affects all New Jerseyans.”

20%-30% of gas in New Jersey may be purchased by out-of-staters (highly unlikely) but, if so, will those truckers and New Yorkers keep going out of their way to pay for gas that will now be more expensive? And to make up that loss how many Delawareans can we expect to cross the bridge to take advantage of a 6% sales tax?

In the 2017 Governor’s Budget Summary the Motor Fuels tax is supposed to bring in $545,550.  Raising this gas tax on Friday by 2.6% (37.5/14.5) would theoretically generate $865 million in extra revenue, but with less driving and fewer out-of-staters, that will likely drop to $800 million.

As for the sales tax, at 7 cents it has brought in:

NJ Sales Tax

The sales tax proposed is 6.5 cents as of 1/1/17 and 6 cents as of 1/1/18 so the cut in revenues would be about:

  • FY17: $340 million
  • FY18: $870 million
  • FY19: $1.40 billion

Since the gas tax hike would all go into the Transportation Trust Fund this money will wind up being made up by either:

  1. raising other taxes
  2. not making the pension contribution
  3. cutting spending

with that last option included only as a concession to the rule of three.

8 responses to this post.

  1. Posted by Anonymous on June 28, 2016 at 1:20 pm

    Christy may go down in history as the governor who destroyed the state of New Jersey very sad indeed.

    Reply

    • Posted by dentss dunnigan on June 28, 2016 at 1:46 pm

      While he certainly didn’t help too much I would say the politicians that gave out promises to pensions without ever think about funding them .The exact same mistake will be made with the constitutional amenment to fund them …from what tax is the question to be asked ,fine put it on the ballot but tell everyone how it will be paid for.But in this state we all know how it will play out ….town funding will be cut and property taxes will soar once again .Which ,if that is what they have planned tell the taxpayer so they can decide themselves ,don’t hand us this …it’s the right thing to do …so is sending my kids to Harvard the right thing to do but I’m not in a position to pay for it .

      Reply

    • Posted by George on June 28, 2016 at 10:41 pm

      Florio was the last gov to fund the pension scheme. His thanks was being relected zero times.

      Reply

  2. Anyone who thinks the sales tax will be reduced as promised is a fool…..it isn’t supposed to take effect for almost 2 years….the scumbags in charge will find a way out of it and keep it at 7% (if not raise it!) by then thereby resulting in no savings to the public via a reduction as well as paying more for gas immediately.

    It’s another bullsh*t story by Fat Boy who will be out of office by then.

    Reply

  3. Posted by Javagold on June 28, 2016 at 2:31 pm

    That just cost every NJ driver another $5 a fill up. For absolutely nothing. Stupid lying fat fucker.

    Reply

    • Posted by Anonymous on June 29, 2016 at 5:15 pm

      And this to the evergrowing list of reasons to leave NJ. Gonna invest in lead the way we are going.

      Reply

  4. Posted by Eric on June 28, 2016 at 3:09 pm

    dentss:
    The voter cannot read or write. The voter will probably vote yes if it is closer than the no button.
    Eric

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: