NJ State Senator Speaks Out On Opposition To Gas Tax Increase
PHILADELPHIA (CBS) - Mike Doherty, a State Senator in New Jersey, spoke out against proposal that would raise the state's gas tax by 23 cents per gallon.
Doherty, during an interview with Rich Zeoli on Talk Radio 1210 WPHT, said the lawmakers should figure out how to cut costs in other places before considering this option.
"They want to raise the tax. They're saying it's 23 cents but it could be a lot more. The problem I have, as pointed out by the Reason Foundation, New Jersey road construction projects are extremely costly and expensive. It's 12 times the national average, $2 Million per mile, compared to New York State that's spending $500,000 per mile to construct and maintain roads. I think we owe it to the people of New Jersey, before we ask them to pay one penny more in a higher gas tax, why are we spending so much on our road construction projects? Let's get an answer to that."
He also stated that if gas prices rise, so will the per-gallon amount of the tax.
"They're saying it's 23 cents but the the devil is in the details. One of the components to get to this 23 cents per gallon is a seven percent sales tax. They're calculating right now seven percent times $1.84 gasoline to get to the 23 cents. But guess what? What about when gas goes from two dollars a gallon, if it goes back up to three dollars a gallon, tack on another seven cents. So that 23 cent per gallon tax is now 30 cents per gallon. They're being a little sneaky about these numbers. That 23 cents could really go up as the price of gasoline goes up."
Doherty believes smalls businesses in the state will bare the harshest burden if the tax increase is enacted.
"It's going to hurt all kinds of small businesses in New Jersey. Just to give you an example, I heard from a landscaper who buys $45,000 worth of gasoline every year to run their lawn mowers and their power tools, they're not even using the roads. Well, guess what? Their costs are going to go up and they're going to pass it on to the customers that they service. Also, the airline industry. New Jersey is actually a haven for cheap jet fuel. Well, not anymore, once these taxes increases go through. So it's really going to hurt small business. It's going to hurt the commercial airline industry. It's going to hurt all the gas stations throughout New Jersey that are getting a lot of business because of our cheap gas."
