On July 1, 1990 the the New Jersey sales tax increased from 6 percent to 7 percent, and was expanded to include items such as soap, detergent, toilet paper and cigarettes. Immediately afterward and for the rest of his term, then Governor Jim Florio, was excoriated.
Governor Chris Christie yesterday justified raising the gas tax by 260% effective tomorrow in conjunction with lowering the sales tax at a later date (to 6.5% as of 1/1/17 and 6% as of 1/1/18) with more of his mindless bravado and dodgy numbers:
In doing some fact checking on the claim:
In his news conference on the proposal Wednesday afternoon, Christie said the gas tax hike would cost a driver about $100 a year, $200 in a two-car family, and the sales tax would save the average household more than $400.
With some thought:
- $100 extra on a 23 cent increase comes to buying 435 gallons per year and, assuming a 15 gallon tank, works out to 29 fill-ups and 6,525 miles of driving annually.
- $400 savings in 2018 when the reduction is supposedly going to be fully phased in would require annual purchases subject to sales tax of $40,000.
- If the state is going to lose $250 per family on average in taxes and not cut spending then where are they going to make up that money?
Then there was this spiel from a town hall meeting at Wall library on Tuesday with another set of dodgy numbers:
With some thought:
- $465 savings on sales tax means $46,500 in purchases
- 12,000 miles at 24mpg translates into 500 gallons purchased annually at an extra cost of $115
- If the state is going to lose $465 per person on average in taxes (gas tax money being dedicated for road purposes) and not cut spending then where are they going to make up that money?
It’s spitballing and, based on past experience, we should all know where the spit is going to hit.
We may know around 11:59PM today how it plays out. What do you think?