Coalition says excessive spending, LLC tax are steps in longer-term effort to control economy

CONCORD, N.H. ― Now that the Democratic Party controlling the state Legislature has successfully spent more
money than New Hampshire residents can afford, these irresponsible progressives are working overtime to
promote new taxes, such as the LLC business income tax, to try and cover their spending spree.

“Working families of New Hampshire know that raising taxes in the midst of a struggling economy defies
common sense,” said Andrew J. Manuse, communications director of Citizens for Sensible Legislation. “If these
new taxes are allowed to stand, it will assuredly lead to more job losses, fewer business opportunities and less
innovation. The idea of creating new taxes during tough economic times is so irresponsible that there is clearly
another motive behind the spend, then tax policies of the current Legislature.”

Limited Liability Companies already pay Business Enterprise Taxes on payroll and interest like other businesses
in the state. But with this new LLC tax, such company owners will have to pay taxes on net profits. According to
the way LLCs are organized, company profits are really just an accounting term for the owners’ personal income.
The state has also assumed a power to define “reasonable compensation,” which will literally seize the money
that business owners have rightfully earned to pay their mortgages and feed their families.

“If history is any lesson to us, it is clear that power hungry progressives will not stop with taxes on LLCs that
effectively dictate the income these business owners can make,” Manuse added. “The Democrats ruining New
Hampshire are trying to get citizens used to the idea of new and increased taxes. They are intentionally
spending more than the state can afford. This will set up an opportunity for them to use spin and deception to
rally support for an income tax for everyone. Clearly, a sales tax would be part of that package.”

With more spending will come more taxes, which will naturally make government bigger. How much of the new
tax revenue will pay for this useless government waste, while the Legislature’s spending problem remains
unaddressed? And as constituents are burdened with more taxes, politicians will continue to lobby for one
special interest group or another. The tax law will be used in this capacity to over regulate the private affairs of
businesses and individuals.

"The proposed LLC tax is just another big government scheme to expand Concord's control over the state's
economy," said John Slattery, chairman of Citizens for Sensible Legislation. “The LLC tax is a direct result of
Democrats’ desire to line the government’s pockets at a time when New Hampshire families and businesses are
cutting back. At the end of the day, this will just add to the pain New Hampshire residents are already facing.”

About Citizens for Sensible Legislation

Citizens For Sensible Legislation is a volunteer coalition of residents committed to educating the people of New
Hampshire about candidates, legislation and issues that affect individual and economic liberties.


If you'd like more information about New Hampshire Citizens for Sensible Legislation, visit http://cslnh.org