Message to Governor Murphy, the gas tax increase will not keep the Transportation Trust Fund fully financed!
Because of the following facts-
People who filling up in New Jersey from surrounding states now find that it is no longer worth it to do so. The savings are no longer there.
More people are buying Hybrid vehicles. They use substantially less gasoline, which means less taxes collected.
The rise of the Electric/Plug-in Hybrid. The first uses no gasoline and the former almost none if not driven beyond its electric battery range.
With an automatic 4.3 cent increase in the gas tax on October 1st, the state of New Jersey is in a no win situation. The Democrats made a big mistake by raising the gas tax in the first place and now with the automatic increase it is even worse. And yet the revenue will continue to go down.
Per News12, “The department says that lower fuel consumption levels over the past two years necessitated the price increase “in order to ensure compliance with the 2016 law that requires a steady stream of revenue to support the state’s Transportation Trust Fund program.””
Also, “Figures from the conservative-leaning Tax Foundation show that the change means New Jersey will go from the eighth-highest gas tax in the country to the fifth.” And yet I predict that there will be another automatic gas tax increase and it will still not fully fund the Transportation Trust Fund!
It is time to ditch the Gas Tax and find some other fair way to fund road construction and repair. Maybe use some formula based on vehicle weight. This would be fair for the heavier the vehicle, the more damage it does to our roadways. Or charge a flat tax for every car. At least something that would bring in sufficient revenue and would not be onerous.
That is my opinion- Jumpin Jersey Mike