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NJ is Raising Gas Prices November 1st, 2016

If you live in the Tri-State area, I am sure you are well aware of how much cheaper the gas prices are in New Jersey in relation to it's surrounding states. The reason why gas prices are so low is because of how cheap the NJ state gas tax is.  Although, compared to New York, the price of gas in New Jersey makes many New Yorker's jealous, but soon residents of the Garden State are going to be feeling like they filling up in New York.

After a long battle between state leaders, Governor Chris Christie agreed to raise the gas tax in order to generate funds for the Transportation Trust Fund. Starting on November 1st, the gas tax will increase to 23 cents a gallon. Governor Christie states that this tax will be very beneficial to the state and will help pay for improvements to bridges, highways, and railroads. This tax increase would generate over $32 billion over the next 8 years, all which will go to the transportation fund.

Governor Christie is against raising taxes at all cost, but after the train crash in Hoboken, many state leaders came to the conclusion that there are many problems with the transportation system that needs to be corrected immediately. Raising the tax might hurt consumers but in the long run will help improve and protect the roads and trains they use every day.

It is evident that the increase in gas tax was packaged deal, because Democrats have agreed to lower the state’s sales tax and slowly get rid of the NJ estate tax by the year 2018. Overtime the sales tax would decrease from 6.875 in 2017 to 6.625 in 2018.

The tax gas hike will affect many commuters especially those with lower incomes. For example, many college students who commute to school will feel a major hit. Many students have low incomes but with this tax increase could soon be finding other means of transportation.

With the combination of oil prices consistently flirting around $50/per barrel and the new gasoline excise tax, New Jersey gas prices might not be so enticing after all.

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