Advocacy groups Don’t tie gas tax to inheritance, estate taxes

While lawmakers on both sides of the aisle have largely conceded that an increase in the state’s gas tax, which has been unchanged since 1988, is inevitable in order to fund the depleted Transportation Trust Fund. However, some Republicans and business groups have lobbied for pairing the move with a repeal of the inheritance and estate taxes.

After nearly a year of consistently stating that “everything is on the table” in regards to TTF funding, Gov. Chris Christie took a more aggressive stance on the matter last month, saying that he, too, would not consider raising the gas tax without other tax concessions.

The coalition says that such a precondition could lead to the loss of approximately $600 million from the general fund and would unfairly benefit New Jersey’s wealthiest residents.

“New Jersey needs a sustainable plan for investing in transit and fixing our crumbling roads and bridges, but a bad deal that blows a hole in our budget, gives the wealthy another tax cut, and forces working families to pick up the tab simply isn’t worth it,” said Analilia Mejia, coalition spokesperson and executive director of New Jersey Working Families. “Legislators should forget giving the wealthy further giveaways and focus on ensuring low-income workers are shielded from the effects of any fuel tax increase.”

The Legislature is expected to revisit the issue in the weeks and months following next Tuesday’s legislative elections.

“New Jersey’s economy isn’t growing because the state is broke and unable to invest in essential assets that help promote broadly shared prosperity,” said Gordon MacInnes, president of New Jersey Policy Perspective. “The proposal to tie an essential increase in fuel taxes — which will be paid directly or indirectly by all New Jerseyans — to the elimination of a tax on inherited wealth paid by a few thousand families will only make this situation worse.”