Sweeney & Prieto Announce Agreement on Plan for Renewed Transportation Trust Fund
I personally do not want to continue to have our tax money spread amongst the unions and special interests. It is time to review and change, for one, the prevailing wage laws in New Jersey. We spend about $2,000,000 per mile of roadway due to the structure of the bidding scheme. See some excepts below regarding this piece.
I encourage all to form your local groups and take action by bringing this issue to your community and your local representatives office.
While the plan increases our taxation of fuel, "the gas tax would increase by 23 cents a gallon. An estimated 35 percent would be paid by out-of-state motorists.", it provides the following tax cuts.
The plan also includes five tax cuts worked out over the past several months during ongoing negotiations involving Democratic and Republican lawmakers from both the Senate and the Assembly. The plan does not include any changes in jet fuel taxation.
The tax cuts would provide:
- Tax Savings for the Working Poor: Increase the Earned Income Tax Credit for the working poor to 40 percent of the federal benefit amount beginning in Tax Year 2016. Total tax savings of $137 million annually.
- Tax Savings for Retirees: Increase the New Jersey gross income tax exclusion on pension and retirement income over four years to $100,000 for joint filers, $75,000 for individuals and $50,000 for married/filing separately. In the fifth year, seniors earning up to $125,000 can take a 50 percent credit on up to $100,000 in retirement income and those making up to $150,000 can take a 25 percent credit. Total tax savings of $75 million the first year and $164 million annually when fully phased in.
- Eliminate the Estate Tax To Make NJ More Competitive: Phase out the estate tax over 3 1/2 years, replacing the current $675,000 threshold with a $2 million exclusion after January 1, 2017, going to the federal $5.4 million level from January 1, 2018, to December 31, 2019, and eliminating the estate tax altogether as of January 1, 2020. Total tax savings of $109 million the first year and $552 million annually when fully phased in.
- Tax Deductions for NJ Motorists: Provide an annual income tax deduction on up to $500 in state gas taxes paid for all New Jersey motorists with incomes up to $100,000. Total tax savings of $20 million annually.
- Tax Savings for Veterans: Provide a $3,000 personal exemption on state income taxes for all New Jersey veterans honorably discharged from active service in the military or the National Guard. Total tax savings of $23 million annually.
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