Wisniewski proposes raising gas tax
February 21st 2008
I wrote about the advantages of raising the state’s gas tax back in October. Now, Assembly Transportation Committee Chairman John Wisniewski (D-Middlesex) has proposed a combination of an increased gas tax, increased tolls, and selling the lottery as a way to pay down state debt and pay for transportation projects:
Wisniewski’s plan would not create the public, nonprofit corporation that Corzine has proposed for operating the toll roads. Instead, the New Jersey Turnpike Authority would continue to run the Turnpike and the Garden State Parkway, and also would take over the Atlantic City Expressway from the South Jersey Transportation Authority…
Wisniewski’s plan would boost tolls on the Turnpike by 25 percent three times between this year and 2016. Garden State Parkway tolls would be increased by 15 cents this year and 25 cents in 2014, and Atlantic City Expressway tolls would go up by 25 cents this year and again in 2014…
Wisniewski’s plan also would increase New Jersey’s gas tax by six cents a gallon in each of the next three years and by the cost of inflation every year afterward. The state taxes on a gallon of gas in New Jersey are 14.5 cents today. Only Wyoming and Alaska have lower rates…
Wisniewski’s plan would use neither toll nor gas tax revenues to reduce general state debt. Instead, he said, the sale or lease of the Lottery could raise up to $10 billion for that purpose. His plan also embraces a tax on water consumption of up to $8 per quarter to pay for open space preservation, freeing up other funds for debt reduction.
Of course there’s no magic bullet, but this plan sounds a lot more fair than Corzine’s scheme. (I pointed out how unfair Corzine’s scheme is in this post.) Wisniewski’s plan also avoids the overhead of an additional layer of bureaucracy. And the 18 cents/gallon gas tax increase will cost only $7.50 per month for driving 15,000 miles/year in a car that gets 30 miles/gallon.