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Elections and their Consequences

November 7, 2024

2024 Election Results–The Politics

As you are no doubt aware, former President Donald J. Trump (R) was elected President again this week, defeating Vice President Kamala Harris (D). As we discussed in our Voter Guide, even though the polls showed a near tie in each of the seven big swing states, it appears the late deciding voters all broke heavily in one direction in the final days of the race, this time in favor of Trump, giving him a bigger win than either Biden had in 2020 or Trump had in 2016. Trump has won all 7 of the swing states, and based on the vote totals right now, Harris would have needed a 2% across the board swing to flip enough states to have been elected. It’s a close win for Trump, but also a clear one, and not something that can be written off as a quirk of the pandemic or the electoral college–previous claims that Trump’s support was some kind of aberration or freak occurrence seem proven wrong. 

Trump both got his supporters to turn out and convinced others to change their opinion and support him for a return to office. He made gains in a wide variety of demographics, though the biggest shifts seem to be in Hispanic citizens and young men. Compared with 2020, Trump saw an improvement in 48 states (Washington and Utah the exceptions). There are still a few million votes to be counted out West, but as of now Trump has gotten about 2 million fewer votes than he did in 2020, Harris on the other hand is running 13.8 million behind Biden’s total. While there may have been a broad anti-MAGA coalition in the midst of the pandemic and the unrest of 2020, it looks like a big part of that voting bloc, after 4 years of the Biden Administration, either stayed home or switched their vote in the hopes that Trump will bring back the economy of 2019. Democrats’ decision to run the governing partner of a President with a 38% approval rating at a time when only about 27% of voters believe the country is on the right track seems to have been a historic mistake, and one that perhaps should have been more obvious to them. 

Trump is nearly certain to win the total popular vote when all votes are counted–only the second Republican to do so in the nine presidential elections from 1992 on (W Bush in 04 being the other). He’s also to be the second person ever to be elected to a nonconsecutive term in office, the other being Grover Cleveland back in 1892. 

As expected, Republicans will flip control of the US Senate as well. Though incumbent Senators Tester (D-Montana) and Brown (D-OH) were able to run well ahead of Harris, it wasn’t enough and they were defeated. Democrats were narrowly able to hold onto their seats in Wisconsin, Michigan, and Nevada despite Trump winning those states. Pennsylvania, and Arizona are still too close to call, though analysts are expecting Dems to hold on in AZ, while PA is leaning to a Republican flip for Dave McCormick. Republicans will have between 52 and 54 of the chamber’s 100 seats. 

Control of the House of Representatives has still not been called as Democratic candidates seem to have held up better in the fight for that chamber. Right now the expectation seems to be that Republicans will maintain control, though again with a very small majority, as little as 2 or 3 seats out of 435. 

New Jersey

Here in New Jersey, Harris won the state as expected, but her small margin of victory has proven shocking to folks both in the state and national observers. With some votes still to be counted that will likely increase her margin of victory slightly, she is only ahead by 5 points, 51.5% to 46.6%, with 1.9% going to third parties. 4 years ago Trump lost the state by 16%. This is the closest a Republican presidential candidate has come to winning the state since 1992; in fact it’s just the second time in the last eight presidential elections that we’ve even seen a single digit race. This comes despite the fact that neither candidate made any meaningful effort to flip the state, with rallies, campaign ads, or spending. Trump saw an improvement in every county relative to 2020. The biggest swing came in Passaic County, which went from a 17 point Biden win to a 3 point Trump win. Passaic County has a combination of large numbers of Hispanic voters, the state’s largest concentration of Arab-American voters, and rural areas in the western part of the county–three groups that swung hard against Harris. The traditional Democratic bastion of Hudson County also swung 18 points toward Trump. 

Congressman Andy Kim (D) was elected to a six-year term in the US Senate representing the state; he is leading Republican businessman Curtis Bashaw by 8.5%, overperforming Harris’ showing. Kim will be filling the Senate seat vacated by the conviction of Sen. Bob Menendez earlier this year. Gov. Murphy has promised to appoint Kim to the Senate soon, before the January 3rd inauguration date.

There was no party change in the 12-person makeup of our House delegation. In the most closely watched district (the 7th in Central Jersey), Congressman Tom Kean Jr. (R) was reelected by a nearly 7% margin. Asm. Herb Conaway (D) was elected to the open seat in the 3rd district, and state Sen. Nellie Pou (D) won the North Jersey-based 9th district that became open when longtime Congressman Bill Pascrell died in August. She is only winning by 4% in a district that had voted for Biden by 19%, showing that the swing towards Republicans has had some down-ballot effects. 

Such a surprisingly close race does seem to have genuinely concerned Democrats in the state. Gov. Murphy says Democrats ‘need to look in the mirror’. The race to be his successor as Governor will heat up significantly with these elections behind us. Both parties are looking at a competitive primary in June and clearly a competitive general election next November. No political party has managed to win three NJ governor’s races in a row since 1965.

This election absolutely gives Republicans real hope of taking over, it’s much easier to shift an electorate by 6 points than by 16 points. On the other hand, we’ve also seen over the last 30 years that once in office, presidents become less popular and their opposition becomes more energized. Dems may also make a more concerted effort to move to the center and nominate a more moderate and electable candidate to compensate for these results. On the Republican side, this may also be a good result for radio host Bill Spadea’s primary campaign, as he has run the most pro-MAGA campaign. Republicans will feel energized and will likely see meaningful investment in the governor’s race now. That would be a key difference–in 2009 when Chris Christie beat Jon Corzine there was substantial investment from national groups, when Jack Ciattarelli ran against Murphy in 2021 national strategists thought the race was unwinnable and didn’t invest–part of the reason he fell 3% short. 

The entire General Assembly will also be on the ballot, and we will have contested primaries in addition to contested general elections. A race this close means several legislative districts flipped to Trump, and a strong republican candidate for governor could bring in several new assembly members and cut the Democrats’ current 52-28 margin (the state senate will not be on the ballot until 2027).

2024 Election Results–The Policies

On policy that affects our members, the Trump win seems likely to stop several policies that would hurt our industries. The Biden Administrationโ€™s EPA recently set significantly higher emissions standards for future vehicles, designed to force manufacturers to sell mostly electric vehicles, these will likely be scrapped. Trump, either directly or in partnership with Congress, will likely also look to prevent California from moving forward with the Advanced Clean Cars II rule, which is the regulation that phases in a ban on the sale of new gas-powered passenger vehicles. Under Gov. Murphy, NJ is one of about a dozen states that have opted to follow the California standard. While the hope here has been that the next Governor of the state will pull us out of this mandate, now it appears the new Administration in DC will.

The proposed and burdensome heat standard rules from OSHA also look likely to be repealed, or at least significantly curtailed, though that may increase the pressure for a state-level solution in Trenton. The fate of the proposed menthol cigarettes and flavored cigar bans are a bit unclear, Trump will certainly not move forward with them, though there is a chance Biden could force them through in the next few weeks, unlike some other regulations itโ€™s a more open question about whether there would be the political will to go back and repeal a ban.

The big Congressional fight next year was already expected to be the expiration of most of the tax cuts Trump had signed into law in 2017. Now it seems likely that all of those rate cuts will be extended and protected, possibly even cut further. And then of course thereโ€™s what wonโ€™t happenโ€”tax increases on income or capital gains, or broad new labor mandates. The Credit Card Competition Act, which retailers have pushed for the last decade to do something to bring down credit card fees, will still be alive in a Republican Congress (if it doesnโ€™t become law as part of the lameduck process). One of the cosponsors in the Senate is JD Vance, the incoming Vice President.

On the downsides, the President does have the power to enact tariffs unilaterally, without new legislation from Congress. If Trump follows through on plans to enact a blanket tariff on all imports of 20% (or more), that would raise costs for a variety of products members sell, particularly auto parts. Last week this article discussed some of the impacts, with the CEOs of AutoZone and Stanley Black & Decker both quoted from recent investor calls promising to raise the cost of their products to pass on the expense of any tariffs. A lot of food is imported, especially when the crops are off-season in the US, and the prices of many items in c-stores may also go up. Also, in the northeast we import a significant amount of both refined motor fuel and crude oil from overseas. If the tariffs were to cover these products, it may increase the cost of gas 40ยข a gallon. However, Trump has also consistently campaigned for low gas prices, so he may be convinced to exempt these products. 

Some of the domestic spending programs approved under Biden never made it out the door, chief among them the NEVI program to provide businesses with grants to install EV fast chargers. Given the skepticism of government incentives for EVs held by Republicans across the board, thereโ€™s a good chance this funding could be eliminated as a way to help offset the tax cuts. Trump also explicitly campaigned on “mass deportations now” of immigrants in the country illegally, a number that is estimated to be about 12 million people nationally, 500,000-750,000 in the state of New Jersey, ranging from violent criminals who came in a few months ago to working families that have been here decades, or were brought here as children by their parents. There has been some talk that the new Administration would be looking to focus initially on those who had committed felonies in the US for deportation, if efforts become expanded that could lead to another labor shortage like what we saw during the covid pandemic, particularly if the new Administration were to also seek to cut the number of legal immigrants allowed into the country as well. 

A bigger question is how will the Democrats in Trenton react to the election and to the second Trump Administration next year. We would hope they will move to the center and try to avoid excessively broad, disruptive, and unpopular new mandates, seeing how there is now a real risk to their election prospects. On the other hand, if they feel the federal government is not going to act on things they prioritize, like EV mandates, tobacco restrictions, heat standards, environmental and labor regulations, will they respond by making a concerted effort to get those policies enacted here? One thing is certain–we will be there to advocate for our industries.

Reminder for Important Filing Deadline

In case you haven’t already, don’t forget to file your Business Ownership Information (BOI) registration with the federal government by the end of the calendar year. Don’t wait until the last minute, as it is being increasingly expected that the huge backlog of business owners who have not filed will do so at the last minute and may cause the system to crash. 

This requirement is for more businesses with fewer than 20 employees or fewer than $5 million in revenue. The registration requirement came about because of a federal law called the Corporate Transparency Act (CTA). There have been several court challenges to the law, as well as efforts to delay the filing deadline, but so far none of them have succeeded, and we are just a few weeks from the end of the year. Since this law was designed to crack down on money laundering, the penalties for a business that does not file its registration can be surprisingly steep. 

You can file the form and view their Q&A HERE. Feel free to reach out to Nick@njgca.org if you have any questions or need any help.

Rack Averages

Date Rack Avg Avg w Taxes Low Rack
10/31 204.23 $2.6493 195.70
11/01 202.64 $2.6334 192.95
11/04 206.67 $2.6737 197.81
11/05 208.34 $2.6904 199.00
11/06 207.43 $2.6813 197.88
Date Avg Retail Avg Margin Diesel Rack Avg
10/31 $2.95 0.32 227.95
11/01 $2.95 0.30 227.66
11/04 $2.93 0.30 233.04
11/05 $2.93 0.26 235.15
11/06 $2.93 0.24 231.63

News Worth Knowing:

Member Benefit Partner (MBP) Spotlight: REIT Lubricants

Reit Lubricants Co. – For the very best in Commercial, Industrial, and Automotive Lubricants. Reit Lubricants Co. is a family-owned operation, supplying customers in New Jersey, Pennsylvania, Delaware and Maryland. What began as a family heating oil company in 1945 has evolved over three generations to become a multi-faceted business, including a dedicated lubricant division. They continue to be a family run business, offering patrons personal attention and exceptional customer service. Today, Reit offers lubricants, coolants, diesel exhaust fluids, and other specialty products to customers in the automotive-, industrial-, and commercial-industries. Products are delivered in both package and bulk from two centrally located facilities and through a company-owned fleet of 32 trucks. That means orders are filled quickly and customers get their deliveries on time. Reit distributes major brands like Phillips 66, Kendall, Chevron, and Lubriplate. Orders are processed through a highly trained and professional sales team. They have a very loyal customer base, and are proud of their hands-on approach with patrons. As a new MBP, Reit is offering special pricing and promotions unique to Association members.   If you would like to inquire about their products, offerings, pricing, and more, feel free to reach out to their two Sales Consultants, below:

 

Andrew Liccardi 

Sales Consultant, assisting customers in Sussex, Passaic, Bergen, Hudson, Essex, Union, Middlesex, Monmouth, Mercer, Hunterdon & Warren Counties 

P: 609-743-3418 E: ALiccardi@reitlube.com

 

Jim Grady 

Sales Consultant, assisting customers in Ocean, Burlington, Camden, Gloucester, Salem, Cumberland, Cape May & Atlantic Counties 

P: 609-743-3417 E: JGrady@reitlube.com

Available Real Estate

Medford, New Jersey

We are periodically approached by members to post a classified ad in our communications, and are happy to help if possible.

Though we typically limit such listings to the “Available Real Estate” section below, for this week we are repositioning this classified entry to the main body of our newsletter in hopes of helping our member reach additional interested parties. 

Gas station for sale or lease.  103 Taunton Rd., Medford, NJ 08055

This is a functioning gas station at a signalized and very busy signalized corner of Medford, a higher-income community in south Jersey and near Philadelphia. 

The building has about 1250 sf and is situated in 0.45 acres.  It consists of the land, gas station, and a rented two-bay auto repair shop. Shop income is about $48,000 per year, and property taxes are about $8145 annually. 

The gas station has three underground tanks: 12,000 gallons for regular, 4,000 gallons for premium, and 4,000 gallons for diesel. Tanks are double-hull fiberglass from 2009, fully inspected and functional.  Gas is currently unbranded.  

The property has strong development prospects, so an owner-user can operate it until s/he decides to develop it – or not.   A tenant can rent only the gas function. Lease with option to buy is a possibility.  

Please call Theodore Vakrinos at 703-768-8580 landline, 703-7317302 cell;  or email at tvakrinos@gmail.com

Do you have an advertisement or classified listing you’d like to submit? 

Contact us at info@njgca.org with the details and your request. 

Cape Harbor Shell

**Price Reduction**

795 Route 109, Unit B, Lower Township, NJ, 08204

Contact: Jerry 609-425-8837 capeharborshell@comcast.net 

Click HERE to view listing

Station for Sale

Thriving High Profit Gas/Service Station close to Major Highway in Prime Location. 

This Exclusive Gas Station is the Sole Provider in the entire town, achieving a remarkable fuel profit of up to and sometimes over 1$ a gallon. Consistently selling 45,000 gallons monthly. Most fuel customers come from Highway so fuel prices do not have to be competitive. 

Also included with the Property is a Reputable High End Auto Repair Facility. Repair shop has all required Specialty and Diagnostic Tools for servicing mostly High End Vehicles. Advertising is no longer used do to an enormous Demand and large Customer Base. Repair Business has has potential for increased profitability and expansion, the business is open to experienced buyers for a possible partnership or profit sharing arrangement. Location is 1 out of 100. Fuel sales make 20-40K a month and repairs can do the same with the right operator. 

This one of a kind opportunity can include seller financing for those with High-Level Automotive or Gas Station Experience.

Contact Greg
908-291-7845

Our Road Warrior newsletter is brought to you by the following Member Benefit Partners:

New Jersey 
Gasoline-Convenience-Automotive Association
615 Hope Road, Bldg. 2, 1st Floor
Eatontown, New Jersey 07724

 

Phone: 732-256-9646
eMail: info@njgca.org

 


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