The Monadnock Ledger Transcript, thus I presume the Concord Monitor as well as the Valley News asks if it is time for an income tax. The Granite State Fair Tax Coalition has been out promoting an income tax with their forums and letters to the editor campaigns. This year’s twist is class warfare, those rich folks are not paying their fair share! If you can’t dazzle them with the brilliance of your idea, baffle them with bull!
Mr. Fernald points out that the top 15% income earners pay far less than half of the property taxes used to pay for the schools. In class warfare, it is always good to bring up the children, who can resist the children! Then compare apples to oranges and hope no one notices. Could it be that the top 15% income earners only own far less than half of the property? Where is the unfairness?
NH already has an income tax, in fact a few of them (go to turbotax.com, enter “States with no Income Tax” into the search box, view the results). There is the Interest, Dividends, and Capital Gains Tax on Individuals (NH DOR Form DP10). Those are income categories of people who are well off, frugal, or trade in equities like real estate, stocks, and bonds. They must pay a tax to the State of NH based on those earnings.
Then there is the Business Enterprise Tax based on a business’ payroll. That would be a tax on the wages of their employee’s. This isn’t the smartest way to implement an income tax, discouraging business owners from adding employees or giving pay raises! The Business Profits Tax is a tax on their profits, a form of income.
What NH doesn’t have is an Individual Wage tax. It is through wages that most people earn an income. What they really want when they say Income Tax is to put in a Wage Tax on all the folks who still get a paycheck. If you get a paycheck this tax is on you!
With the rich, well-to-do, frugal, and the retired paying the interest, dividend, and capital gains tax, and businesses paying the BET and BPT, I suppose it is only fair that those low and moderate income folks who get a paycheck should pay their fair share. Is that what you mean by fairness, Mr. Fernald?
Work Hard, Have Fun!