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New Transportation Plan Amounts to 10-Year, $4.5 Billion Hike on NJ Taxpayers

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As details emerge about the latest transportation plan hatched by Speaker Prieto and Senate President Sweeney, Americans for Prosperity says the deal is worse than ever for taxpayers.

The pro-taxpayer group warns that the new proposal, which primarily involves swapping a 23 cent per gallon gas tax hike for an estate tax rollback, would cost state taxpayers as much as $4.5 billion over 10 years. 

“The Democratic leadership’s new plan is a dead end for taxpayers. The proposal up for consideration tomorrow represents a net tax increase of as much $4.5 billion over ten years. With three-fourths of the proposed TTF authorization relying on billions in new debt, this plan will only dig New Jersey into a deeper hole,”said AFP State Director Erica Jedynak.

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“New Jersey families cannot afford this drastic tax increase – an increase which only masks the underlying problems with our current system and disproportionately harms those struggling in an anemic New Jersey economy.”

“With the state having brought in more than $1.9 billion in combined motor fuel taxes and tolls last year, it is clear that New Jersey has a transportation spending problem, not a revenue problem,” Jedynak added.

“Structural reforms are necessary to fix this problem, including a thorough audit of the DOT. AFP calls on the Legislature to stand up for those struggling most in this economic recovery and make the hard decision to enact structural reform rather increase taxes, to rein in out-of-control costs.”  

AFP, based in Boonton, will continue putting grassroots pressure on lawmakers to reject the tax hike, having already made over 200,000 phone calls and door knocks in order to inform and engage New Jersey residents on this issue already this year.

Key Facts about New Transportation Deal:

·       A Huge Tax Hike: The deal represents a net tax increase of as much as $4.1 billion over 8 years or $4.5 billion over 10 years.

·       Massive Borrowing: Three-quarters of the TTF authorization - $1.5 billion per year - is paid for with more borrowing, not pay-as-you-go.

o   Debt Service: Debt service alone would cost taxpayers billions over a span of 30 years, including $2.4 billion over the first 8 years or $3.9 billion over the first 10 years.

·       Total Cost of TTF Authorization to Taxpayers: NJ taxpayers would be on the hook for $6.4 billion over the first 8 years or $8.9 billion over the first 10 years.

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer. Click here to submit a Letter to the Editor.

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