More good news regarding the additional tax.
http://newjersey.news12.com/news/moody-s-gives-gas-tax-plan-credit-negative-outlook-1.12438922
http://newjersey.news12.com/news/moody-s-gives-gas-tax-plan-credit-negative-outlook-1.12438922
Deal struck to hike NJ gas tax 23 cents
- Thread starter 92 Blazer Jeff
- Start date
If you pay for gas with cash as I do you may want to consider using a credit card to keep track of it if this occurs.
http://nj1015.com/gas-tax-relief-sorta-kinda-how-about-a-tax-deduction/
http://nj1015.com/gas-tax-relief-sorta-kinda-how-about-a-tax-deduction/
I use a Bank of America credit card to purchase gas. The year end summary gives me the dollar amount spent, not the gallons or state where purchased. It would be a deduction from taxable income, not a tax credit, meaning you would save whatever your marginal tax rate is.
2015 NJ marginal tax rates
http://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf
Assume spending $1000 per year on gas at $2.00/gal equals 500 gallons. At .23 cents per gallon equals $115.
Now look at the marginal rates, assume somewhere between 1 and 2 percent, so you might save $2.30.
It's too good to be a tax credit.
None of this proposal looks right as stated in the article.
2015 NJ marginal tax rates
http://www.state.nj.us/treasury/taxation/pdf/current/njtaxratesch.pdf
Assume spending $1000 per year on gas at $2.00/gal equals 500 gallons. At .23 cents per gallon equals $115.
Now look at the marginal rates, assume somewhere between 1 and 2 percent, so you might save $2.30.
It's too good to be a tax credit.
None of this proposal looks right as stated in the article.
More good news! 
http://www.courierpostonline.com/st...016/10/20/nj-gas-tax-hike-vote-2016/92364174/
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That 23-cent gasoline tax hike may just be the beginning -- and what's worse, due to a loophole in the law, there's nothing drivers can do about it.
A provision in the new law to raise the state's gasoline tax gives the state treasurer the ability to change the rate from year to year if the state doesn't hit its gasoline revenue targets.
Such a decision would not require a vote by the Legislature and, thus, no public hearing.
“The citizens have no input. The Legislature has no input. It’s an automatic increase,” said Sen. Jennifer Beck, R-Monmouth
http://www.courierpostonline.com/st...016/10/20/nj-gas-tax-hike-vote-2016/92364174/
______________
That 23-cent gasoline tax hike may just be the beginning -- and what's worse, due to a loophole in the law, there's nothing drivers can do about it.
A provision in the new law to raise the state's gasoline tax gives the state treasurer the ability to change the rate from year to year if the state doesn't hit its gasoline revenue targets.
Such a decision would not require a vote by the Legislature and, thus, no public hearing.
“The citizens have no input. The Legislature has no input. It’s an automatic increase,” said Sen. Jennifer Beck, R-Monmouth
Half of NJ’s new gas tax is being used to pay back old debt. Can state curb trend?
http://nj1015.com/half-of-njs-new-g...-can-state-curb-that-trend/?trackback=tsmclip
http://nj1015.com/half-of-njs-new-g...-can-state-curb-that-trend/?trackback=tsmclip
Watch NJ News tonight Ed, it lays it out pretty good.
In theory, if you pass question #2, they'll have to find (or borrow) other money to pay down the debt they've run up by fixing the roads without raising the gas tax over the years (half of the new tax is slated to pay down that debt). The reason they borrowed money to fix the roads over the past years is because NJ citizens more often vote for people who promise not to raise taxes. They won't vote for someone willing to try and fix the rotten system long-term (you know, like when you have to "really" decide what to buy based upon cash at hand?).
Spending only real money would likely mean pain for NJ citizens, and most citizens don't like that. They said, go ahead and borrow: "What, me worry?"
In theory, if you pass question #2, they'll have to find (or borrow) other money to pay down the debt they've run up by fixing the roads without raising the gas tax over the years (half of the new tax is slated to pay down that debt). The reason they borrowed money to fix the roads over the past years is because NJ citizens more often vote for people who promise not to raise taxes. They won't vote for someone willing to try and fix the rotten system long-term (you know, like when you have to "really" decide what to buy based upon cash at hand?).
Spending only real money would likely mean pain for NJ citizens, and most citizens don't like that. They said, go ahead and borrow: "What, me worry?"
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Here is the story I think - http://www.njtvonline.org/news/video/debate-ballot-question-dedicate-fuel-tax-ttf/
My take away was slightly different:
A 'yes' vote will allow them to bond an additional $12 billion
A 'no' vote will force the governor and legislature to spend real money
Under no circumstances will this vote impact the new gas tax.
Of course, the two sides have different opinion on if a 'no' vote will really stop the additional borrowing. The 'no' side is basing their claim on an opinion issued by the bipartisan Office of Legislative Services, while the 'yes' side is basing their opinion based on the Treasury, which is controlled by Christie, who surprise, surprise supports a yes vote.
Do you have a source for this or is this your opinion?
My take away was slightly different:
A 'yes' vote will allow them to bond an additional $12 billion
A 'no' vote will force the governor and legislature to spend real money
Under no circumstances will this vote impact the new gas tax.
Of course, the two sides have different opinion on if a 'no' vote will really stop the additional borrowing. The 'no' side is basing their claim on an opinion issued by the bipartisan Office of Legislative Services, while the 'yes' side is basing their opinion based on the Treasury, which is controlled by Christie, who surprise, surprise supports a yes vote.
Do you have a source for this or is this your opinion?
Or,
A 'yes' vote will FORCE them to bond an additional $12 billion, OR spend real money.
A 'no' vote will allow them to use the money from the gas tax for debt service.
I think any way you slice it a significant portion of the incremental gas tax that went into effect this week will go towards debt service. Currently the NJ TTF is about $16 Billion in debt ( http://www.state.nj.us/ttfa/financing/bonds.shtm#outstanding ), on which the TTF will owe about $1.3 Billion in debt service each year ( http://www.state.nj.us/ttfa/financing/bonds.shtm#current ). Currently NJ collects a little north of $500 Million in fuel taxes ( http://www.state.nj.us/ttfa/financing/apprevenues.shtm ). The $500 Million is before the additional $0.23/gal.
What is owed at this point can't be changed - has to be paid one way or the other. Bonding more money just allows the illusion (delusion??) to continue.
What is owed at this point can't be changed - has to be paid one way or the other. Bonding more money just allows the illusion (delusion??) to continue.
If you read the below, and everything in it, you'll probably go blind. Maybe you understand all this more than the rest of us tsqurd? Do you work in the system somehow? I don't understand one quarter of it. The FAQ answers totally blow my mind.
But I do know this: there is something wrong about issuing 31 year bonds to fund everything, and then fall behind on the payments (or keep funding projects to shoulder even more debt), and then tax us all even more to pay debt. I don't want to pay taxes to pay debt, I want the money to fix the transportation grid. Maybe that is an unreasonable request, I don't know.
http://www.state.nj.us/ttfa/
This may help folks understand, VOTE NO
http://nj1015.com/what-happens-to-the-funds-if-you-vote-no-on-nj-ballot-question-2/
It's just another craftily worded question, don't be duped again.
http://nj1015.com/what-happens-to-the-funds-if-you-vote-no-on-nj-ballot-question-2/
It's just another craftily worded question, don't be duped again.