Duane Morris Government Strategies, LLC pic

NJ Senate President Steve Sweeney and Assembly Speaker Vincent Prieto reach terms on new Transportation Trust Fund Agreement.

Senate President Steve Sweeney and Assembly Speaker Vincent Prieto announced Friday that they had come to terms on a new agreement to replenish the state’s depleted Transportation Trust Fund and gradually phase out the estate tax.

The plan calls for a 23-cent-per-gallon gas tax increase, which Sweeney (D-West Deptford) and Prieto (D-Secaucus) say will generate $1.2 billion each year in new revenue and provide support for approximately $2 billion in annual infrastructure investments. The agreement also calls for several concessions in conjunction with the gas tax hike, such as a plan to gradually phase out New Jersey’s estate tax over the next three to four years.

Details:

  • The attention will now shift to Gov. Chris Christie, who late last month agreed on an 11th-hour plan with Prieto to tie a 23-cent-per-gallon gas tax increase with a decrease in the state’s sales tax from 7 percent to 6 percent. Sweeney didn’t support the agreement, citing budget concerns;
  • the new agreement, the plan to phase out the estate tax is similar to a bipartisan bill cosponsored months ago by state Sens:
  • the exclusion rate on the estate tax, which currently applies to inheritances valued at $675,000 or more, would be upped to $2 million beginning Jan. 1 and then to the federal level of $5.4 million by Jan. 1, 2018. By Jan. 1, 2020, the tax would be completely eliminated;
  • the plan would also increase the threshold for retirement income exemptions for married couples to $100,000 over four years. Exclusion rates would be increased to $50,000 for married couples filing separately and $75,000 for single taxpayers.
  • the plan also calls for offering a $3,000 personal exemption on state income taxes to qualified veterans, a $500 annual income tax deduction to in-state motorists making up to $100,000 per year and an increase in the Earned Income Tax Credit program to 40 percent.

 

Advertisements

Published by

Martin Milita

Martin Milita is a Senior Director at Duane Morris Government Strategies, LLC. Duane Morris Government Strategies (DMGS) supports the growth of organizations, companies, communities and economies through a suite of government and business consulting services. The firm offers a range of government relations and public affairs services, including lobbying, grant writing; development finance consulting, media relations management, grassroots campaigning and community outreach. Milita works at the firm’s Trenton and Newark New Jersey offices. Visit his blog at: https://martinmilita1.wordpress.com Follow him on twitter: @MartinMilita1 https://www.facebook.com/martin.milita http://www.dmgs.com/ BLOGROLL Martin Milita – About.me Martin Milita :: Pinterest Martin Milita @ Twitter Martin Milita at Slideshare Martin Milita on Google+ Martin Milita Yola Site Martin Milita | Xing

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s