TRENTON, N.J. (CBSNewYork/AP) — New Jersey’s Democratic legislative leaders have reached an agreement that would boost the gasoline tax by 23 cents a gallon to fund transportation projects while cutting other taxes.

Senate President Steve Sweeney and Assembly Speaker Vincent Prieto announced the proposed deal Friday.

The plan also calls for phasing out the estate tax, increasing a tax credit for the working poor, raising the retirement and pension income tax exemption, and offering a tax savings for veterans. It would also give motorists who earn up to $100,000 an annual income tax deduction of up to $500.

The deal is designed to raise $2 billion for transportation projects, WCBS 880’s Peter Haskell reported.

Sweeney this month slammed the brakes on a late-night deal brokered between Prieto and Republican Gov. Chris Christie that would have gradually returned the sales tax from 7 to 6 percent.

Christie’s office wasn’t immediately available to comment on the deal.

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