Demise Of Proposed NJ Gas Tax Spurs 4th Of July Holiday Travel
TRENTON, N.J. (CBSNewYork/AP) -- The demise of a proposed 23-cent-per-gallon gasoline tax hike in New Jersey had many residents rethinking their Independence Day holiday travel plans.
Hundreds of thousands of drivers were headed to family events or weekend getaways on Saturday, trips that many people thought they would have to reconsider due to the fear of higher prices at the pumps.
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But the proposed hike fell through Thursday when the Democratic-led state Senate scrapped any votes on Republican Gov. Chris Christie's plan to hike the gas tax while cutting the sales tax from 7 percent to 6 percent over nearly two years.
It was part of a deal Christie had reached with Assembly Speaker Vincent Prieto. The proposal had passed Tuesday in the Democrat-led Assembly. The increase would have sent New Jersey's current gas tax of 14.5 cents per gallon from second-lowest in the country behind Alaska to roughly equal that of Connecticut, which has the sixth-highest at 37.51 cents, according to the Tax Foundation, an independent tax policy research organization.
"The gas tax hike was definitely something we were concerned about while we decided whether or not to make this trip," Doug Martin said Saturday morning while gassing up his family's minivan in Freehold Township. Martin, his wife and their five children were headed from their Manalapan home to Westchester County in New York for a weekend family gathering.
"With five kids between 4 and 13, we do a lot of driving for sports, ballet lessons, etc., and I'm driving an hour each way to get to work," Martin said. "The cost of gas starts to add up and, with a tight family budget, you look to save where you can. But since it seems like (a gas tax hike) won't be happening any time soon, we figured we could -- and would -- make this trip."
Maryann, who was traveling through New Jersey from Rhode Island on Saturday, said she was still in shock when she saw prices of $2.12 per gallon at the pump.
"We are actually looking for a cheaper gas station," she told WCBS 880's Kelly Waldron. "So we figured once we go a little further south we'll find a different gas station."
But others, like Martin from Quebec, found the current prices to be a relief.
"In Canada, in Quebec it's more expensive than here," he said. "So it's cheaper for us to put gas here."
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Following the decision, Christie released an order requiring the state Department of Transportation to come up with plans for an immediate shutdown of all work supported by the Transportation Trust Fund.
Some who oppose the order say the move would potentially impact hundreds of middle class workers.
"This is the height of the season where people would be working and making their hours and earning the wages that they need to earn to keep their homes, their mortgage payments," Greg Lavalle, of Operating Engineers Local 825 said.
No details on the plan had been announced as of early Saturday afternoon.
It is unclear how many projects will be affected, but Christie said transportation trust fund money shouldn't be spent on any projects that aren't "absolutely essential."
Several drivers said they understand why a gas tax hike is needed and are willing to pay it if it means improved roads and bridges. But they also say the state has mishandled the situation for years.
"If they had raised it gradually over the last few years, we could have gotten a lot of work done and it wouldn't have seemed like such a stiff shot to the wallet," said George Tucker, 44, of Jackson. "No one wants to pay more, obviously, but this is work that needs to be done. They don't raise it for years, then they sock you with a big boost all at once. Stupid -- that's what it is."
AAA estimates around 43 million people are expected to travel this holiday.
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