Biggest New Tax in 20 Years
In early March, the House will vote on the largest new state tax since imposition of the Business Enterprise Tax two decades ago. This massive new tax, the HB-593 casino gambling tax, would suck as much money out of the New Hampshire economy as a 3 to 4 percent retail sales tax.*
If four casinos were built as allowed under HB-593, nearly $200 million would be cannibalized each year from consumer spending at existing New Hampshire businesses and placed under the control of state government. Falsely advertised by the casino lobby as economic development, this humongous transfer of control over spending from consumers to government would be a blow to both our private economy and to liberty.
Just like a sales tax, the casino gambling tax is a tax on consumer spending. Historically, the New Hampshire legislature has vigorously opposed consumption taxes. Most recently in 2001, a House less Republican than today's rejected a proposed 2.5 percent sales tax by a 61 to 39 percent margin.
Worse, the casino gambling tax is purposefully cloaked in policy designed to shift spending by New Hampshire consumers from zero tax activity (such as retail sales) to an activity bearing what would be the state's highest tax rate burden (slot machine gambling).
Big New Tax ... Corrupting Political Influence
In every state to have legalized them, casinos and legislators develop excessively close and unseemly relationships.
First, unlike any enterprise now allowed in New Hampshire, over $200 million dollars in tax money would be collected from just four businesses. This would make the legislature dangerously dependent on just four businesses for a substantial portion of state taxes.
Second, unlike any enterprise now existing in our state, casino profits would be almost wholly determined by government policy. In sum, these policy choices create a recipe for casino gambling interests to exert extraordinary political influence:
- Tax rates
- Casino locations
- Number and location of competitors
- Number of allowed slot machines
- Manufacturer, model number, payout ratio, and design of slot machines
- Number and type of allowed table games
- License and license renewal fees and terms
- Alcohol and smoking regulations
- Inspections and enforcement
- Casino owner, manager, and investor background checks
- Infrastructure construction and subsidies
- And on and on
In all casino states, gambling interests become the dominating political influence. State houses are filled with gambling lobbyists, and the gambling industry fills campaign war chests. In state after state, excessive mutual dependency between casinos and legislators is followed by bribery and corruption, with legislators getting led off in handcuffs. Recent examples are Alabama in 2010 and Pennsylvania in 2011.
The New Hampshire legislature experimented with just this type of dangerously close, corrupting set of relationships with the Boston & Maine railroad monopoly in the 1880s. For those not wanting to repeat history, see:
Senator William Eaton Chandler, Book of Bargains,1891, pages 44-55.
Pervasive corruption of the New Hampshire legislature by the railroad monopoly culminated in passage of the anti-monopoly provisions of Part II, Article 83 of the New Hampshire constitution in 1903.
Call Your Legislator
Targeted Reps are being hit by waves of casino-financed patch-through phone calls. Unlike the casino industry, we are not promising you free money from nowhere. We are depending on you to act out of pure altruism and love for our state.
Please make a brief (and fun) 1-2 call or voice message to your Reps.
Ask them to vote NO on HB-593, the casino gambling bill.
Find your Reps' phone number ... here.
If you prefer more precision, hit reply, let me know your residence town, and I will send you names and phones of your Reps still on the fence on casino gambling.
Thank you.
