I feel like I am perhaps the only person in New Jersey OK with paying higher gasoline taxes in exchange for the environmental benefits, progress on national energy independence promised infrastructure improvements and other trade-offs. I fundamentally believe that artificially low carbon energy pricing of the past few years is not in our best interest from multiple perspectives. In addition, it appears that the benefits of the new law may outweigh the costs for me.
The increased tax will cost me about $400 per year personally and will cost my business about $1,500 per year. It is painful but I will survive it.
Assuming the tax deal stays in place as approved, it would save me a roughly estimated $2,000 per year income tax in retirement.
Perhaps it will save my heirs some estate tax when I’m gone. The amount is uncertain.
Despite the spotty evidence on wealth drain, I am concerned with affluent south Jersey retirees moving out of the state. The new tax deal should help address that problem by removing the financial incentive for wealthy retirees to leave the state.
I expect that we will see decreased gasoline consumption across the state a year from now. That is good for the environment and national security.