TRENTON, NJ – Trenton lawmakers are proposing a $500 tax credit to help residents contend with soaring gas prices, energy costs, and inflation. With no indication that Governor Phil Murphy will move on calls for a suspension of the gas taxes, minority Republicans in Trenton called upon Democrats to hear them out.
Senate and Assembly Republicans called on the Democratic majorities in both houses of the New Jersey Legislature to convene a session to adopt legislation sponsored by Senator Ed Durr and Assemblyman Hal Wirths that would give families $500 of tax relief to combat soaring gas prices and inflation.
“The Murphy administration is sitting on billions in tax overcollections that we want to give back to New Jerseyans to help them fill their tanks and pay for everyday things,” said Senate Republican Leader Steven Oroho (R-Sussex). “We’re glad the governor agrees that the Legislature should consider our proposal to provide families with $500 of immediate relief, and we’re calling on our Democratic colleagues to convene a session to pass the bill without delay.”
“It is important that people feel like they can travel,” said Assembly Republican Leader John DiMaio (R-Warren). “The tourism industry is huge for the state and seasonal businesses. Another down year is something we need to avoid at all costs.”
The governor said the legislation is “worthy of debate” and that he’s “open to any creative idea on inflation and, in particular, gas.”
New Jersey has a large budget surplus this year and Governor Murphy so far appears intent on pushing that money into expanding government, but Republicans want to return that money back to the people instead.
The legislation would return to New Jerseyans a significant portion of the $4.6 billion of extra taxes collected by the Murphy administration this year that was unanticipated when the budget was adopted.
“New Jersey families are getting hit by the double whammy of high gas prices and the worst inflation in 40 years,” said Senator Ed Durr, the prime sponsor of the proposal in the Senate. “At the same time, Governor Murphy has taken billions more in taxes from New Jerseyans than he budgeted. That’s the people’s money, they need it to pay their bills, and we should give it back. There shouldn’t be a single Democrat in New Jersey who opposes putting $500 back in people’s pockets right away.”
“With toll increases across the state thanks to Governor Murphy, the tax credit is needed for more than just gas,” said Assemblyman Hal Wirths, the GOP budget officer and prime sponsor of the proposal in the Assembly. “This is a matter of affordability. Money needs to be put back into people’s pockets because Murphy has been hell-bent on taking money out of people’s pockets the past few years.”
The “Gas Price and Inflation Tax Credit Act” would provide a $500 refundable income tax credit to families with an income less than $250,000 when they file their 2021 New Jersey tax returns.
If an eligible taxpayer has already filed their 2021 taxes, they would automatically receive a $500 payment from the State when the legislation is enacted.
