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Ooops, they did it again.
The revenue sources that the House is now considering consist primarily of tax increases. After last year when the legislature increased more than 40 taxes and fees with all of the political heat it took for doing so, it is surprising that the House leadership is again considering a multitude of tax increases rather pursuing other options.
Included in the taxes reviewed these last two weeks are an increase in the tobacco tax; an electric or power generation tax; a tax on nuclear fuel; a tax on second homes; a tax on capital gains; repealing a reduction in the insurance premium tax; a increase in the beer tax; an increase in the gas tax; an education income tax; an estate tax; and an increase in pet shop license fees. On Thursday, the House Ways & Means Committee took "straw" votes and made recommendations on these proposals. Not all of the tax increases were recommended but interestingly, of those that were, they all had party line votes with the Democrats voting to recommend more and higher taxes and the Republicans opposed. The biggest fear is more taxes and not enough down sizing of government.
The Legislature finds itself in this position as a result of increased spending over the last four years when every indicator during that period was saying to slow down because of the struggling economy. Now with this $220m+ budget deficit looming in a non-budget year but with elections six months away, the political impact of these and other decisions over the next few weeks will be interesting to observe.
While not all of these tax proposals will be enacted by the close of the session, it is a very poignant example of these legislators too easily turning to taxes rather than making the necessary cuts to the budget.
Legislature Looks to Study State Contracting Practices
In these economic times anything the state can do to ensure it is receiving the greatest value for its dollar is good for the taxpayers of the state. And second, any procedures or criteria that can be developed to help New Hampshire's business community be eligible for some new business is always a good direction.
LLC Repeal Recommended by Key Committee
The effort to repeal the so-called "LLC" tax has to some degree received support from the three players in the process. The Senate has passed a bill repealing the measure; the Governor has publicly endorsed the repeal and included it as a part of his deficit reduction package, and now the House Ways & Means Committee has endorsed the measure (15-5) in its recommendations to the House Finance Committee as they review the components of Senate Bill 450. While a good step in the right direction, the issue of defining reasonable compensation is not as likely to pass this year and will be studied in the future. Bruce Berke
Sheehan Phinney Capitol Group | 
