Boonton, NJ – Americans for Prosperity is blasting Trenton’s new gas tax plan which the pro-taxpayer group warns will lead to draconian increases at the pump, as high as 70.4 cents per gallon including both state and federal taxes.

“New Jersey taxpayers need to know this bill is even worse than imagined. The new plan includes a 12.5% sales tax at the pump on top of the existing 14.5 cent motor fuels tax. This means as the price of gas goes up so does the tax. At $3 a gallon, the New Jersey tax would be 52 cents and to the total tax, including the 18.4 cent federal tax, would be a devastating 70.4 cents per gallon,” explained AFP state director Erica Jedynak. “On top of that this disastrous bill includes a giveaway to Big Labor, bailouts for municipalities, and authorizes spending millions of dollars on pet projects and boondoggles like light rail.”

“New Jersey residents deserve better than the same old tricks from Trenton. Dropping critical legislation in the dark of night with little time for citizens to scrutinize what it means for them and their families is wrong,” said Jedynak.“Furthermore, this plan does nothing to fix the structural problems with the TTF and does not include a single reform to rein in wasteful spending. Quite the opposite, this plan forces hard-working taxpayers to pay for Trenton’s fiscal mismanagement and insatiable appetite for more taxes and more spending.”

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“AFP will fight to stop this bill and pledges to hold any lawmaker who votes for this awful piece of legislation accountable if they do so.”

Overview of Trenton’s New Gas Tax Plan (Assembly Bill A10 / Senate Bill S2412)

·       New 12.5% Sales Tax Levy: Gas tax would increase as price increases up to $3 a gallon. The total tax bill at the pump for New Jersey motorists would hit 70.4 cents a gallon.

·       More Debt: The 10-year, $20 billion plan includes $15 billion in new borrowing when the TTF is already drowning in debt.

·       Big Labor Giveaway: The bill includes apprenticeship language which would all but guarantee that only union shops could take on state infrastructure projects. By limiting competition from non-union sops, the state would be making the already high costs of taking care of our roads and bridges even costlier.

·       Millions for Pet Projects and Light Rail Boondoggles: Despite the poor state of our roads and bridges, language in the bill stipulates that if trust fund brings in more than it did in 2018, those funds will go to mass transit rather than paying the debt or funding other road projects. The bill also mandates that the state must continue to construct 1,000 lane miles of bike paths over 5 years. 

·     Bailout Mechanism for Municipalities: If local municipalities can't pay off their trust, the bill sets up a fund that would allow the state to bail them out.

AFP will continue mobilizing grassroots opposition to the new tax hike by driving New Jersey to sign the pro-taxpayer group’s petition to lawmakers. AFP will also be escalating field efforts through phone banking and canvassing. AFP is also holding a “Fight the Gas Tax Rally” with District 23 lawmakers, Sen. Mike Doherty and Asm. John DiMaio, today in Bridgewater.

Americans for Prosperity (AFP) is a nationwide organization of citizen-leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and intrusiveness of government is the best way to promote individual productivity and prosperity for all Americans. For more information, visit state and taxpayers.