New Jersey Policy Perspective: Tax Increase to Fund Transportation Should Be Combined with Credit to Help Low-Income Families
ITEP Work in ActionAs New Jersey policymakers close in on a deal to boost New Jersey’s transportation funding, a bold solution that raises at least $1 billion in new revenue a year through new gas taxes is essential if New Jersey wants to take advantage of one of its greatest economic assets – its location – and rebuild a strong state economy. Equally essential is strengthening a key tax credit for working families – the Earned Income Tax Credit (EITC) – to ease the disproportionate pinch a gas tax increase would mean for low-income households.