New Jersey Governor Christie signs gas tax hike, restarts halted transportation projects
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
U.S. Republican presidential candidate Governor Chris Christie speaks to supporters in West Des Moines, Iowa, U.S. January 31, 2016. REUTERS/Brian C. Frank/File Photo
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
By Hilary Russ
NEW YORK (Reuters) - New Jersey Governor Chris Christie on Friday signed into law a gasoline tax hike of 23 cents a gallon and ordered that stalled bridge, road and transit projects be restarted.
A week ago, lawmakers agreed to increase the state gas tax, which had not been raised since 1988, to 37.5 cents per gallon in order to replenish the nearly broke fund that pays for many transportation projects.
In early July, Christie halted all but the most essential projects paid for with the state's Transportation Trust Fund, including $2.7 billion of NJ Transit projects, because he and lawmakers could not agree on how to fund the program.
The deal between the Democrats who control state legislature and Christie, a Republican, calls for the sales tax rate and other taxes to fall in exchange for the higher gas tax. An estate tax on wealthy residents when they die will also be phased out.
"This compromise legislation locks in what I called for from the beginning: tax fairness for all residents, leading to a more affordable state and an improved economy," Christie said in a statement.
Critics of the plan said that once the tax cuts are fully phased in they will blow a $1.4 billion hole in the state budget every year.
Moody's Investors Service said this week the combined revenue package would "strain the state's operating budget amid rapidly rising pension contributions and below-average revenue growth."
The expected $1.2 billion to be raised annually for the next eight years will be dedicated to transportation projects, while the reduction in other taxes will reduce money available to pay for education, services and other costs, Moody's said.
(Reporting by Hilary Russ; Editing by James Dalgleish)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Turkish parliament approves presidential system, paving way for referendum
- Far-right leaders meet to discuss 'free Europe' vision
- Four more survivors extracted from Italian hotel hit by avalanche
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!