Recently in Taxes Category

By Rep. DAVID HESS
For the Monitor
July 13, 2008 - 12:00 am

No matter how hard they try, Democrats in Concord just can't sugarcoat their tax, borrow and spend policies of the last two years. A case in point is the recent opinion piece authored by House Speaker Terie Norelli ("Republicans left costly problems for us to solve," Monitor Forum, June 25).

Despite the harsh accusations, half-truths and just plain misstatements, she can't turn this year's budget disaster into an M&M chocolate.

Let's look at the facts. First, state spending. In the 2006-07 biennium, general fund appropriations totaled $2.71 billion. Under the leadership of the Democrats this session, that figure jumped to $3.19 billion; that's an increase of $475 million, or 17.5 percent. This money is raised from taxes and fees paid by you, the taxpayers of New Hampshire.

So how are the Democrats planning to pay for this? First they raised no less than 15 taxes and fees, including a second increase in the cigarette tax in two years. They also found new things to tax, such as charitable games of chance, cigars, registry of deed filings, court filings and many more.

But that wasn't enough to correct the deficit, so they decided to bond $90.5 million to pay the state's current expenses. They did that in a single, hurry up "special" legislative session that ended at midnight June 5 - all without referral to a committee, without a public hearing and with inaccurate information and misrepresentations
on the House floor.

Bonding school building aid

The history of this issue is particularly disturbing. In early May, the governor proposed bonding $80 million in school construction aid to help pay for the budget deficit. After a hearing before a joint House-Senate committee, this proposal was unanimously rejected - with the House Democratic leadership leading the charge. Then, barely three weeks later, during our midnight special session, and without a word of explanation or justification, the Democratic leadership did a 180-degree turnaround and passed this bonding on a straight party- line vote.

Not only that, but they threw in another $20 million in bonding to boot, all with no public hearing or any public input whatsoever. So much for the democratic process.

And what about some of the other misleading comments in Speaker Norelli's piece? Yes, indeed, the State House roof was leaking in the spring of 2007, but it was the previous Republican House that passed the appropriations to fix it.

As for the vaunted retirement plan fix, the House did - unanimously, and on a voice vote - pass an excellent bill that was fair to retirees, current employees, employers and taxpayers alike, only to see the big public employees' unions dismantle it in the Senate. In the face of extreme union pressure during the committee of conference, the House Democratic leadership backed down on virtually every major point. So we will be back trying to fix this again next year.

10-year highway plan

Finally, the 10-year highway plan. The Democrats didn't fully fund that either. In fact, when Commissioner Charles O'Leary presented the plan, he realistically asked for a six-year plan, which was unanimously endorsed by committee Republicans because it was fully funded, honest and straightforward in its design. Again, the Democrats chose smoke-and-mirrors legislation.

Maybe if Speaker Norelli and House Democrats were less concerned with blaming Republicans and appeasing the governor, but instead concentrated on doing the work of the people, we wouldn't be in the mess we are in today.

(Rep. David Hess of Hooksett is the deputy House Republican leader.)

For Immediate Release                                                                           Contact: House Republican Office   

May 1,2008                                                                                            603-271-3665

Today Governor Lynch announced a plan to raise more money for the general fund, but in doing so he ignored a pledge he made just months ago not to raise taxes or impose new fees on the citizens of New Hampshire.

The Lynch plan calls for increasing the tobacco tax by 25 cents, imposing a new tax at a rate of 10% on Texas hold’em winnings, raiding dedicated funds in the amount of $1 million, imposing additional costs on business owners by reducing the discount on alcohol they buy to 10%, and forcing lapses of $2.2 million on Home-Community Based health Care (HCBC) and nursing services programs.  This plan would theoretically bring in approximately $45 million for the year, according to Rep. Norm Major (Plaistow), former Ways & Means Chairman.  The governor also proposed to bond $40 million of school building aid, which will free up an additional $40 million in general fund revenues.  

House Deputy Republican Leader David Hess (Hooksett) stated, “I am frankly disappointed that the governor has not kept his pledge to the citizens of New Hampshire. But I am not surprised.” 

“Ronald Reagan famously stated in Washington in the 1980s that ‘we don’t have a revenue problem, we have a spending problem.’  That is exactly the case in New Hampshire in 2008.  Rather than looking for reasonable places to reduce the bloated budget passed last year and bring it into line with our rising revenues, the Governor and the Democratic leaders of both the House and Senate want to raise still more taxes and fees.  If we had passed a reasonable budget, with an increase in line with the Consumer Price Index (CPI), we would not be where we are now,” added Rep. Hess.  “While our projected deficit for this fiscal year is $45 million, revenues are actually up $72 million, or 3.7 percent above last year,” stated Rep. Major, who serves on the Ways and Means committee.

Republican Policy Leader Rep Gene Chandler (Bartlett) said, “This plan is going to hurt more than help our citizens.  Reducing the discount for small business owners to 10% for alcohol, threatening our hospitality industry; it is outrageous to think that either consumers will pay more or small business owners make less at a time when our economy is in trouble.  These businesses are the backbone of tourism for our state economy; we can not and must not do anything to endanger that.  By bonding $40 million in school building aid, we’re mortgaging the future rather than paying our obligations as they come due.  We also should have learned our lesson from last year when we increased the tobacco tax and revenues dropped off.  Here we go again with an additional tax burden to our citizens; it is irresponsible and not in the best traditions of doing what is right for New Hampshire.”

Spending cap initiative

A conservative group is coordinating efforts in four cities to cap municipal spending at the rate of the consumer price index beginning in 2010.

The New Hampshire Advantage Coalition is working with activists in Manchester, Concord, Merrimack and Rochester to put proposed changes to those communities' municipal charters on the ballot in November.

Coalition chairman Mike Biundo said the effort was sparked by "legislative overspending" last year and by the recent initiative by the Granite State Fair Tax Coalition "to strip away our (anti-broad base tax) pledge and strip away what New Hampshire is, a low-tax, low-spending state."

Biundo said that by tomorrow, language for charter amendments will be filed in the four municipalities. He said plans call for similar filings shortly in Londonderry, Conway, Portsmouth, Keene, Somersworth, Lebanon and Bedford.

"When you add up the 11 communities, this is over 30 percent of the electorate in the state," he said.

Biundo said state law requires the proposed petitions for the charter amendments to be reviewed by the Attorney General's Office and Department of Revenue Administration. He said that when the language is approved, organizers will have 60 days to gather petitions signed by at least 20 percent of the number of local residents who voted in the last municipal elections.

Biundo said his coalition has hired former Ron Paul field director Jared Chicoine and brought back former coalition executive director Tammy Simmons. He claims that such an effort "has never been done before on this scale in this state."

Sure, LET'S use the taxpayers as an ATM machine!  After all, it's THEIR money (not ours!)!  NH Advantage, what's that?

It is becoming quite clear that the Democrats have seriously overreached in this year's budget, especially in the area of revenue forcasting.  They decry that the national and local economies are to blame: "that's why revenues are down!".

Er, not so fast.  While revenues have not met expections, actual revenues are up year over year.  Hear that?  Actual revenues are up.  This small, simple fact gives lie to the Democrats claim that the NH economy has tanked; the only thing that has tanked is their revenue projections!

So, do they admit that overreach?  Do they admit that perhaps the glasses they wore at the time had a tad more tinge of rose in them than warranted?  Of COURSE not!

So, what is their sole way to fix their self-induced problem?  Of COURSE - let's raise taxes and fees (never "how do we protect the taxpayers" and perhaps ramp down the cost of government).  Here's a prelim list:

Increased Taxes and Fees this Session

• HB 1309—A new tax on cigars that will adversely affect sales along the NH border.
  

• HB 1426—Motor fuel imported into NH will be taxed higher and dedicated to a cleanup fund that DES testified, “does not need money right now.”
  

• HB 1594—Establishes new fees that will be levied on the backs of small business owners in NH.
  

• HB 1286—Requires mortgage originators to pay a $100 licensing fee and a $100 renewal fee.
  

• HB 1414—Increases the bail commissioners fee by $15 per day.
  

• HB 1360—House Democrats defeated a bill that would have repealed the civil court filing fee that they adopted last year. Adding a fee of $25 for filing any civil case is just another step in preventing our citizens from seeking redress and is yet another example of the mismanagement of the budget.
  

• HB 1547—House Democrats refused another attempt to repeal the fee charged to the Register of Deeds in an attempt to fund LCHIP by using a method that is harmful to citizens experiencing an already fledging real estate market.
  

• SB 528—Created a $5 incentive for recycling mercury thermostats that would be paid by manufacturers and passed along to the consumer.
  

• SB 519—Imposes a per diem fine on dam owners and operators for failure to repair damage.
  

• SB 317—Raises the tobacco license fee—once again hurting small business and chipping away at the New Hampshire Advantage.

State GOP candidates want tax code overhaul
By KEVIN LANDRIGAN, Telegraph Staff

CONCORD – Both major Republican candidates opposing Democratic congresswoman Carol-Shea Porter support replacing the current tax code with simplified tax rates.

John Stephen, R-Manchester, and Jeb Bradley, R-Wolfeboro, insist a tax overhaul is needed so the country can return to a time when most citizens filed their own tax returns.

"A great nation deserves a better tax code than what we have today," Stephen said.

"Our current tax system is smothering small businesses and stifling economic growth, while it confuses individuals and leaves many feeling that the process is unfair.''

Stephen said if elected he would propose legislation to give all citizens a choice between the existing system and a "simple, flat tax.''

"My guess is that the current system doesn't stand much of a chance,'' Stephen said.

Stephen, a former health and human services commissioner, unveiled his proposal on Monday, the day before the deadline for all Americans to file their 2007 taxes.

Bradley, a former congressman and state legislator, proposed two months ago a rewrite that would replace the current code with three tax rates of 10, 15 and 30 percent.

The Bradley proposal would exempt the first $40,000 of income from the tax, to insulate the working class.

"We would also preserve the favorable tax treatment of home ownership and charitable giving, both important components of the fabric of American life. What is most important is that cumbersome and complex 60,000-page morass is altered to be simple, comprehensible and fair,'' Bradley explained.

While in Congress, Bradley voted for the Bush tax cut of 2003 and vowed to preserve those that will retire in 2010 if Congress fails to act.

"The Democrats like to portray this political handiwork as nothing more than tax increases on the wealthy,'' Bradley said.

"It makes for great political spin but there is one problem: it's wrong.''

Bradley claimed the average American family making $40,000 a year got a tax cut worth $2,000.

Stephen said the group that benefits most from the current system are tax lobbyists who spend millions to preserve or carve out new tax breaks for their clients.

Notice that both Republicans are not for the status quo - they want REAL CHANGE!

Meanwhile, over in the Democratic camp...

While in Congress, Shea-Porter has voted to repeal the Bush tax cuts for the 1 percent most wealthy in the U.S. and voted to give tax relief to middle-class families facing an increase under the Alternative Minimum Tax.

The bill Shea-Porter supported paid for that tax cut by closing a loophole that allows offshore companies to reduce U.S. tax liability.

...nothing than the same thing, over and over again.  Change?  No change at all - only moving backwards....

By Rep. Steve Vaillancourt
 
While Governor John Lynch and prospective Republican opponent Frank Guinta are engaged in a game of reefer madness one upmanship ("I'll see your veto threat and raise you by silencing a duly elected State Representative, Governor"), Democrats in the New Hampshire House tipped their hand to their true mission when they passed no less than five new or increased taxes or fees Wednesday.

Unlike Mark Fernald, the failed gubernatorial candidate who took pride in touting an income tax and is now out there trying to foist one on town meeting voters, House Democrats are employing stealth and obfuscation to make their case with a "Rope a Dope" strategy.

It's a two-pronged attack far more threatening to New Hampshire traditions than a joint here and there will ever be.    "Get the Republicans to focus on phony issues like civil unions and marijuana decriminalization while we lay the groundwork for an income tax," they are whispering to each other behind the scenes.  In fact, they are salivating at the prospect.

First, with the of compliance of Governor Lynch, they passed such a bloated budget, balanced with unrealistic revenue estimates, that only new taxes and fees can possibly fund it.  When the chickens come home to roost and we realize we're $150 to $200 million short (not even including extra money for meeting the school funding mandate), depending on whether you accept Democrats' own estimates or the Republican numbers, the end game is clear.  

Ways and Means Chair Susan Almy, of Lebanon, who has long championed an income tax, tipped her hand in committee last week.  When Republicans spoke against the new taxes (she prefers to call them fees), she actually contended that we have no other alternative.  Fees are the New Hampshire way of funding things, she stated.

The strategy is clear.  Pile on enough fees, and the Democrats, bolstered by their media allies from Concord to Keene and the Seacoast,  will give voice next year to they dare not utter now.  "You know, if we only had an income tax, which is really the fairest tax of all, we wouldn't need all these fees," the Almyites will argue.
They lack the courage to say that now.  In fact, after half the Ways and Means Democrats voted for a version of the Hager-Below-Fernald income tax in committee earlier this year, leadership panicked and tabled the bill so many in the caucus would not be on record supporting what is apparently still not a palatable alternative to the vast majority of New Hampshire voters, Fernald's best efforts notwithstanding.

Instead, House Democrats are voting overwhelmingly for such things as a milk tax, a beverage container tax, a surcharge (tax increase) on registry of deed filings, and motor vehicle registration tax increases.

That was last year, but Wednesday we were handed another six-pack:  a gasoline tax increase, not even to fund road work mind you; a tavern fee 20 times what social clubs which now serve alcohol are assessed; a teen learners permit fee twice what it will cost to administer (which by some definitions makes it no longer a fee but in fact a tax); a particularly onerous tax on businesses for Hazmat clean ups when in fact we already have monies necessary to accomplish the mission; a $1000 fine with an 18 percent late payment penalty (from the very  Democrats who battled against usury in the private sector earlier this year) on telephone companies; and a heating oil tax increase.

Democrats came to the session armed with their marching orders, written instructions on how to vote on each and every bill.  They passed the first five bills and only failed on the heating oil bill by a five vote margin.  One can only pause to wonder whether these outrages will survive a trip to the Senate and the Governor's desk.
House Democrats are led by those who point with pride to how they defied tradition and passed an income tax by a 194-190 margin in 1999.  Almy, Finance Chair Marjorie Smith of Durham, and Majority Leader Mary Jane Wallner of Concord were all on the Finance Committee back then.  Speaker Terie Norelli was championing the tax back then, and Democratic leader Peter Burling (now Senator Burling) was twisting arms to get it passed.  Rep Raymond Buckley, currently recruiting candidates as Democratic Party Chair, voted for the tax back then.

In fact, all but seven Democrats got in line to vote for it.  Of those seven, two are now dead; one has changed his mind and now supports the income tax; one has left politics; and one has changed parties.

Wake up, New Hampshire, it's later than you think.  To quote the late Celtic announcer Johnny Most, Lynch and Republican leaders are "fiddling and diddling", focus on reefers, while the state is about to burn.
 
 
A six term State Representative from Manchester, Steve Vaillancourt, who serves on the Ways and Means Committee, is the former Democrat who voted against the income tax in 1999

Union Leader:

Sunday, Mar. 16, 2008

Whatever money you have left after paying for gas, home heating oil and groceries, you'd better start saving right now. You're going to need it to pay your huge new tax bill.

On Thursday and Friday, Democrats in Congress voted to hike discretionary spending by $300 billion ($700 billion in total spending) in the next five years alone. They would pay for that by passing gigantic new tax increases for virtually all Americans.

The $3 trillion budget resolution passed in the Senate would require $1.2 trillion in tax increases, Sen. Judd Gregg, the ranking Republican member of the Senate Budget Committee, calculates. ($1.2 TRILLION!!) And not just on "the rich," either.

"(Barack) Obama and (Hillary) Clinton both promise to reverse Bush's tax cuts for wealthier taxpayers, but the Democratic budget they'll be voting for would allow income tax rates to go up on individuals making as little as $31,850 and couples earning $63,700 or more," The Washington Post reported on Thursday.

In the House, every single Democrat -- including New Hampshire Reps. Carol Shea-Porter and Paul Hodes -- voted for a budget resolution that would officially raise taxes by $683 million, The Post reported. But this budget is a fantasy, too. It includes no Iraq war spending after next year. It will have to raise billions more than it anticipates.

Instead of cutting back, like most American families are doing, the Democratic majority in Washington is proposing to win election this fall by spending lavishly on key voter groups. And where are they getting the money? Straight from the pockets of Americans already struggling to make ends meet.

This is boilerplate New Deal liberalism. But the anti-wealthy rhetoric behind it does not match reality. The truth is, Hodes and Shea-Porter, Obama and Clinton all talk about raising taxes only on the rich, but they just voted to raise taxes on everyone from the rich to lower-middle class families struggling to survive. That means you.

So, you know that  "economic stimulus" check coming in the mail to you?  $1,600  a couple?  Can you do the math?


What starts out a perhaps a nice idea (frankly, the money should be going to those that can actually create jobs which would create more lasting benefit than a one shot), turns into a Democratic flim-flam as this is a net $400 back to the government.

Such a deal by these retrograde New Dealers!