April 14, 2009
After two very long days the NH House passed a budget which increased spending funded by new and increased taxes. The spending in the state will increase 2.9% in general fund dollars (raised and spent in NH), and 13.9% when you factor in Federal dollars. This budget fails to fund School Building Aid ($83 million), and Revenue Sharing ($50 million), two programs which send money to our cities and towns. This means that the local taxpayer will have to pick up this share and this will result in higher local property taxes. The budget is funded by a 5% capital gains tax, an 8% estate tax on estates over $2 million, and a 10% tax on gambling winnings over $600—all new taxes. The majority will raise the rooms and meals tax by almost 10%, and increase the tobacco tax for the 4th time in 5 years. Further they propose to delay the reduction in an insurance premium tax for two years, a promise we made to bring business and good paying jobs to the state of NH. Republicans offered various amendments to reduce the budget, fund the two revenue sharing programs, and eliminate the above noted taxes (each offered on separate amendments). All amendments failed.
It was noted that Former Speaker Doug Scamman supported tax increases in 1990 when he was Speaker. The taxes were the subject of the Sunday political columns. It is true that he supported, and advocated for these taxes. What was not reported was his answer on why this was true. He noted that the House had passed a budget some months prior which represented a reduction from the prior two year budget. As the economy slipped into a recession the two parties worked together to craft a revised budget. Meeting weekly, the majority and minority worked to reduce the budget another 5% in each of the two years. Only after working to reduce the budget did the parties work together to determine which mutually agreeable taxes could be sought to fill the remaining hole. None of that was done here. He noted to two taxes, the capital gains tax, and the suspension of the insurance premium tax which will be particularly harmful to our state. That is the rest of the story which was not reported.