- June in Trenton: It's all about the Transportation Trust Fund
June in Trenton: It’s all about the Transportation Trust Fund
After months of public speculation over what a legislative funding package would look like, Democratic leaders in both houses introduced legislation on Monday that would fund the Transportation Trust Fund (TTF) through an increase in the gas tax while offering tax fairness initiatives that some Republicans require in exchange for supporting the deal.
The proposal would increase gas tax by $0.23 cents per gallon, which would generate $2 billion in annual revenue for the TTF over the next 10 years. In addition to the gas tax increase, the package is comprised of wide-ranging tax cuts that are designed to create jobs, strengthen New Jersey's economy and create tax fairness. The tax relief, which totals around $870 million, includes a gradual phase out of the State’s estate tax, new allowable tax dedications for certain charities, an increase in the threshold for taxable retirement income and an increase in the earned income tax credit to 40% of the federal level.
The comprehensive tax package is a result of a month’s worth of bi-partisan negotiations and bill sponsors will be working with individual legislators to secure and maintain support right up until the time of the vote, which is expected to take place in the next week.