Raising gas tax a mistake

By Bob McCafferty
In October of 2007 there was a debate held at the Ogdensburg Fire House for the candidates for the seats on the State Senate, State House, Freeholders, County Clerk, etc..
Republican State Senator Robert Littell was retiring from the New Jersey Senate, and both the Democratic Party of Sussex County along with its sister Republican Party were sponsoring candidates to run for the Senator’s seat in the State Senate.
Ed Selby was the Democrat’s choice, and Steve Oroho was the Republican’s choice. Ed was going to address the tax structure to reduce property taxes, which in New Jersey are probably the highest in the country. While Steve waved the flag of patriotism, and then waved the New Jersey State budget. He cried out that wasteful spending must be stopped, and then taxes could, and must be reduced.
This is all well and good, but neither candidate went into the details of what they proposed. With Corzine calling for the privatization, which he referred to as “monetization”. He was just depending on the general public not knowing what he meant. No, Corzine wanted to turn the New Jersey Turnpike and the Garden State Parkway, which are money-makers for the State, over to the private sector. He also wanted to turn over Routes 78 and 80 to the private sector and turn them into private toll roads.
At that time. Mr. Oroho was strongly against the privatization of the roadways of New Jersey.
When the question and answer period came up I asked the following question, which I had to explain was not a puff and fluff question that the U.S. media has the population used to. Anything else with far greater detail is usually dismissed.
The question that I raised was the following:
On Aug. 15, 1971, President Nixon untethered the dollar from gold where it was to be worth $35/oz. He later established fast track on treaties, but only on the tariff rates, and not on the treaty itself. This was a slippery slope, and the US has slipped dramatically.
Ronald Reagan came in and declared that treaties, the passage of which requires a 2/3rds majority in the US Senate, were simply agreements. Agreements require a mere simple majority in both houses. We then had the Maquiladora Program with Mexico, which encouraged US manufacturing to be done in Mexico. The shuttering of the two General Motors plants in Flint, Michigan, cut 33,000 auto workers. Yet GM built new factories in Mexico. Then came the Caribbean Basin Initiative program in 1984 that in essence sent our garment industry to the Caribbean. Thus forcing Americans were forced out of their employment. Along with these came fast track for the entire agreement, which means no debate. It simply mean an up or down vote.
Then came NAFTA, and GATT that further drained the U.S. economy. These unconstitutional agreements grossly reduced the tax base of the cities, counties, states, and the nation, and reduced the spending power of the poor and middle class, while increasing the dependence of the population on the government. This and the continued devaluation of the dollar, which is spelled out as pay more and get less is rampant in the entire country, and it continues this very day.
So my question was that in lieu of this, “how will you address a declining tax base, and increase cost of doing business?”
So neither candidate had a credible response to my question. The flag waving, cut wasteful spending, and reduce taxes candidate Mr. Oroho now suddenly over a period of 9 years realizes that something is wrong. I guess that he did not wave the flag long enough and hard enough. He didn’t cut wasteful spending enough, and low and behold the bridges, and roads need dramatic repairs. So Mr. Cut Taxes now sponsors a bill to put a further damper on our economy with a $0.23/gallon gas tax.
Perhaps he should read the papers and see the state of the economy: more trade “agreement”, more store and factory closing. More homes being foreclosed on. Where does this flag waver believe that the already financially strapped people get the money pay for this? Mr. Cut taxes wants a reduction in the estate tax. Here in New Jersey you pay no estate tax when it is $675,000. His tax cut will affect those that he really represents-the rich. While the regressive gas tax would affect millions, his tax cut will benefit fewer than 5,000. Again, I ask who does he really represent?
What I find interesting and maddening is that his co-sponsor is State Senator Paul A. Sarlo. Why is it maddening? It is because Senator Sarlo is also the Chief Operation Officer of Joseph A. Sanzari, Inc. Is not Sanzari a company that would benefit from increased money that would be obtained from gas tax, and put into the Transportation Trust Fund? So again, I ask who does Senator Sarlo represents.
Now will Senator Oroho change his mind on the privatization of our highways? His argument about Pennsylvania drivers paying no taxes is facetious. If a person from Pennsylvania works in New Jersey they pay NJ Income Tax, and probably purchases more than just gas here. The Pennsylvanian would also be paying sales tax, and contributing to our economy.
What is needed is a state that asserts its rights, i.e., States’ Rights, and resist the actions of that corporate entity called the United States of America that negatively affect New Jersey. Resolutions should be discussed on the floor of the state senate when the actions of this misguided entity called the U.S. government, when those actions affect the State of New Jersey. Remember that all government is local, and governments should be the expedient of the people.
The state should follow North Dakota’s example and establish our own bank. In that way New Jersey would be able to do what the private banks already do, that is, to create money. In this manner the state would not be paying full face value plus interest of money that the private sector banks create out of thin air. It would facilitate low interest loans by the state to the private sector, and thus create a much stronger economy.