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Many More Taxes coming to New Hampshire Next Session

July 8, 2007

storyjohnlynch-2.jpg Remember when you were in school, and your first assignment was to write an essay entitled “What I Did on My Summer Vacation”? Well the New Hampshire Ways and Means committee will have plenty to write about when they return. Committee chairman Rep. Susan Almy has set up five sub-committees to think up and draft new tax proposals.

Sales tax, income tax, property tax, businesses tax, luxury tax, beer tax, amusement tax, inheritance tax, second-home tax — you name it, many people have been having lots of problems with inheritances, what they do is to contest a will with the use of professional help. Oh, and gambling, too. They’ll all get the treatment this summer and fall.

She says setting up these committees is the responsible way to approach next years session.

Committee chairman Rep. Susan Almy said she set up five subcommittees to perfect tax bills of all stripes. It was the responsible way to approach next year’s session, she said, since the state will probably have to raise more money than it does now to fund the definition of an adequate education that is now law.

No, Rep. Almy, the responsible way would have been to not approve Gov. Lynch’s responsible budget with a 17.5 percent increase (three times the inflation rate) filled with government spending. The responsible thing to do would have been to not spend money you don’t have. The bottom line here is that the Democrats have always wanted an income and sales tax, and when John Lynch showed them he approved raising some taxes they knew they could take it to the next level. Gov. Lynch still says he will veto a sales or income tax, but we saw how quickly he folded his position on civil unions when he was pressured by his party to do so.

For those of you not from this area when the above article talks about funding the definition of an adequate education I will give you a very brief recap. The state supreme court ruled that the governor had to come up with a definition of an adequate education and basically provide state funding. Currently the schools are funded locally. If they did not come up with a definition and a plan to pay for it, the court would impose one. Instead of writing a constitutional amendment to remove the court from this blatant abuse of power and overstepping of it’s bounds, the Gov. did come up with a definition. The state will pay half the cost of education.

They didn’t bother to research how much this would cost. And this price-tag is not included in Gov. Lynch’s budget with that 17.5 % spending increase. That is why on top of all the other tax increases, I mean fees, we still need more.

“When we get to the point where New Hampshire has to reform its tax system, we ought to do it with something that works and does minimum damage, rather than in a flurry of political pique when philosophies are raging,” she said.

Almy said the work groups she appointed have instructions to produce, “technically, constitutionally correct bills for all major tax sources. They include those that I hate, those that two-thirds of the committee hate, but ideas that people have brought out.”

Rep. Almy, minimum damage would have been incurred by a true responsible budget, not this abomination.

The one she likes the most, which she admits has slim chance of passing, is the income tax. Gov. John Lynch has pledged to veto any sales or income tax, and Senate Democrats backed him on that stance when they ran for office.

There is the true agenda, an income tax. Get ready people, once John Lynch feels the pressure from his party he will fold on this issue. I don’t care what Senate Democrats said during the election.The income tax is inevitable, and if you think that by adding revenue to the state via an income tax that the other taxes will be relieved, you haven’t been paying attention to Democrat politics. Once they have the additional money, they are not going to give you a break. If Democrats are for the middle class, how come they want to institute a tax that will hurt middle class families? Because if you work for a living you are considered rich to the Democrats.

Yet an income tax still isn’t enough.

“I really don’t think that just an income tax all by itself is the answer, maybe combined with something else. I don’t know yet. We just need to take a look,” she said.

This is what you voted for last November and this is what we are going to get. They just can’t help themselves, they love to spend our money. They know how to spend it responsibly, whereas you are irresponsible.

Almy said the committee is working off the assumption that the state will need up to $400 million, as calculated by lawmakers in the bipartisan Purple Group that has studied education costs.

The more you read, the scarier it gets, doesn’t it. But have you heard of the “kitchen sink” tax bill. It’s exactly what it sounds like, tax everything including the kitchen sink.

The Purples were actually the source of a lot of the tax ideas, in a bill Almy calls the “kitchen sink.” It includes a tax on estates over $3 million, a 3 percent luxury tax on the purchase of cars worth $30,000 or more and on “tangible personal property” worth $10,000 or more; taxes on entertainment, gambling winnings, an expanded tobacco tax, and a payroll tax for businesses with payrolls of $10,000 or more a week. Estimates are that a 1 percent payroll tax would generate nearly $200 million.

And the hits just keep on coming. We just have to hope that somehow the remaining Republicans can hold this off. At least until November of 2008, when we can right this ship. It doesn’t look good in my opinion. Or in the opinion of House Minority Leader Michael Whalley.

Whalley argued that the last stages of budget work in June were “a paper shuffle” to inflate revenues that justified higher spending. He said that locks in the need for a new tax, not only to cover school aid but to balance a budget that he says is off kilter by $120 million.

“They added more programs, expanded programs, and I think there will be a real shortfall. It was the will of many Democrats to build cost drivers into education and to expand state spending so they can get what they have wanted all along, and that is an income tax,” he said. “In the long run, don’t think the governor will be able to hold them back.”

If he really even wants to hold them back. Gov. Lynch has shown his true liberal, tax and spend ways that were well hidden when there was a Republican majority. It doesn’t even matter if he is trully against a sales or income tax, he will succumb to the pressures of his party.


Here you can read the full article written by Tom Fahey who is the State House Bureau Chief.

2 Comments leave one →
  1. July 8, 2007 2:17 pm

    Well hell, if you voted for Democrats you got what you paid, er, will pay, for!


  2. July 8, 2007 2:22 pm

    you’ve got that right, NH.


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