New Jersey – Proposed Sales Tax Increase for Transportation Trust Fund

SALT Report 3826 – Gov. Chris Christie and Democratic legislative leaders Monday were negotiating over a bipartisan plan that would reduce New Jersey’s 7 percent sales tax to 6 percent by 2018 as the state raises the gas tax to rescue the teetering Transportation Trust Fund.

Such a plan would supplant a prior proposal that would have eliminated the estate tax and increased the Earned Income Tax Credit in exchange for a gas tax hike.

The state Legislature, which is scheduled to vote on the tax deal Monday, repeatedly halted proceedings as lawmakers wrangle over the details of a plan to raise the gas tax roughly 23 cents and spend $20 billion on transportation projects over the next 10 years.

For further Information:

http://www.nj.com/politics/index.ssf/2016/06/christie_democrats_negotiating_lower_gas_tax.html