Gas is the new revenue

New Jersey, ,

Gas Tax Revenue

Gas is the new revenue. That is what our wonderful legislators think. With the dramatic raising of the Gas Tax and the so called lock box constitutional amendment on the Transportation Trust Fund (which you will vote yes or no on this coming Tuesday) our politicians want us to think the roads and bridges will now be repaired/built.

 

Well I have bad news for you; the truth is that the state of New Jersey is so far in debt because of borrowing that it will be many years before the monies borrowed will be paid back. And most of the Gas Tax revenue will go towards paying back that debt, not to road repair/building.

 

To make matters even worse hidden in the Gas Tax bill is an automatic tax increase if the revenue does meet the set forth goals for the monies collected. And this could happen as soon as this January and every three months thereafter. Real crafty of them is it not? To make matters even worse is that the so called lock box constitutional amendment that is coming up for your approval this Tuesday that is so deviously written so you would not notice that it would enable issuing of more bonds to increase our state’s debt.

 

We have been mislead to believe that the combination of the recently enacted Gas Tax and voting yes on the constitutional amendment (Ballot Question number 2) will fix all of our Transportation Trust Fund problems. In reality we have/are being flimflammed by our Governor and legislature! Even Kim Guadagno, the Lieutenant Governor, after reading the wording of Ballot Question number 2 says she does not support it and to vote No. This of course has made Chris Christie very upset and wondering why she is defying her leader.

 

Bill Spadea, of NJ 101.1 FM and Chasing, says “that the constitutional amendment authorizes up to $12 billion in bonding because the gas tax legislation and ballot question are bound together. There will be no protection for taxpayers from the misuse of funds.” In other words this means by voting yes, we will be authorizing more borrowing without the need for our approval. How sneaky can our legislature get and did they think that no one would not notice their trickery?

 

Below is the actual wording from the sample ballot:

 

STATE PUBLIC QUESTION NO. 2
CONSTITUTIONAL AMENDMENT TO DEDICATE ADDITIONAL REVENUES TO STATE TRANSPORTATION SYSTEM

 

 

 

Do you approve amending the Constitution to dedicate all revenue from the State motor fuels tax and petroleum products gross receipts tax to the
Transportation Trust Fund?
This amendment would provide that an additional three cents of the current motor fuels tax on diesel fuel, which is not dedicated for transportation
purposes, be dedicated to the Transportation Trust Fund. In doing so, the entire State tax on diesel fuel would be used for transportation purposes. The
entire State tax on gasoline is currently dedicated to the Transportation Trust Fund and used for transportation purposes.
The amendment would also provide that all of the revenue from the current State tax on petroleum products gross receipts be dedicated to the
Transportation Trust Fund. In doing so, the entire State tax on petroleum products gross receipts would be used for transportation purposes.
This amendment does not change the current tax on motor fuels or petroleum products gross receipts.
INTERPRETIVE STATEMENT
This amendment would dedicate all of the revenue from the State tax on motor fuels to the Transportation Trust Fund. The current dedication is 10.5 cents
per gallon on gasoline and diesel fuel. The amendment would include an additional three cents of the tax on diesel fuel that is not currently dedicated. The
total revenue from the tax on motor fuels this fiscal year is estimated to be $541 million.
The amendment also dedicates all of the revenue from the tax on gross receipts of the sale of petroleum products to the Transportation Trust Fund. The
current minimum dedication is $200 million per year. This fiscal year, the revenue from the tax on gross receipts of the sale of petroleum products is
estimated to be $215 million.
The amendment does not change the current tax on motor fuels or petroleum products gross receipts. The dedication to the Transportation Trust Fund
ensures that the revenue is only used for transportation purposes.

 

Please note that it says that it ensures that the revenue is only for transportation purposes, which does not mean that the monies collected will be used only for roadway repair/building. It could be used for the pet rail projects that they would be able to fund without going to the voting public for approval. Isn’t that nice of them to not keep us in the spending loop!

 

I support the idea of a lock box for the Transportation Trust Fund, but there is no way that anyone who has taken a hard look on what is really happening here can vote yes on this amendment. You should take a look on what I wrote as my very first blog – Are Dedicated Funds really dedicated. The answer will really surprise you! Read it and pass it on to our legislators; for this is the way we should be handling this problem.

 

That is my opinion- Jumpin Jersey Mike

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