Democrats' Budget Hits Taxpayers Hard; Republican Efforts to Help Taxpayers Blocked

Concord, NH – Over $250 million in new taxes will by paid by New Hampshire citizens, following today’s vote in the state senate. The vote was on HB 1 and HB 2, the proposed state budget, which increased general fund spending by 8.8%.

“The big-spending Democrats are passing hundreds of millions of dollars onto New Hampshire taxpayers. Rather than increase spending 8.8%, Senate Democrats should hold the line on spending and thus hold the line on taxes,” said Senate Minority Leader Peter Bragdon (R-Milford).

Republicans made several attempts to remove new taxes on businesses and individuals, but these efforts were rejected. The Republican proposals included eliminating $80 million in new business taxes, $40 million in taxes on the tourist and hospitality industry, $50 million in local property tax increases caused by the loss of revenue sharing and $75 million in new tobacco taxes.

“The only solution Democrats offer is higher spending of nearly $1.2 billion and unfortunately supported by higher taxes. This is exactly the wrong time to tax New Hampshire citizens and discourage our businesses from creating jobs,” said Senator Jeb Bradley (R-Wolfeboro).

“Higher spending and increased taxes in a recessed economy are part of the Democrats’ liberal agenda, showing they are out touch with New Hampshire voters. If Governor Lynch signs this budget as passed today, our budget will look like Massachusetts’s in the next biennium,” said Senator Sharon Carson (R-Londonderry).

NH Senate Republicans Reject Democrats' Hikes in Property and Business Taxes

Concord, NH –Today, Republicans in the state Senate promised to fight the large increases in property and business taxes contained in the Democrats’ budget plan. Specifically, Senate Republicans will introduce budget amendments to roll back $50 million in a local property tax increases by restoring local revenue sharing, repeal $80 million of new business taxes, repeal $40 million in rooms and meals tax increases, and eliminate the $75 million tobacco tax increase.

“At a time when New Hampshire families are struggling to make ends meet and New Hampshire businesses are under pressure to keep people employed, Senate Democrats have proposed a series of drastic tax increases to fund their excessive spending,” said Senate Minority Peter Bragdon (R-Milford), “Democrats need to show they can hold the line on state spending before they try to pick the pockets of New Hampshire citizens and businesses.”

Senate Republicans propose replacing the Democrats’ tax increases with across-the-board reductions in the growth of state spending. “An apples-to-apples comparison of the general fund budget shows an increase of over 7.5% from the prior budget. I’m amazed that Senate Democrats have found a way to continue their big-spending ways at a time when the inflation rate is practically zero.”

Revenue Sharing

Senate Republicans propose rolling back local property taxes by restoring $50 million in cuts to cities and towns made by Democratic budget writers. Revenue sharing funds have flowed to cities and towns for over 40 years, yet the budget proposed by the Democrats eliminates those payments.

“Removing revenue sharing from the budget will force our communities to suffer; the towns and cities will have no choice but to raise local taxes to make up for the difference,” said Senator Jack Barnes (R-Raymond). “Democrats in the Senate should not be balancing the state budget on the backs of property tax payers.”

Business Taxes

Republicans will also fight the $80 million tax increase on businesses, caused by the suspension of the Business Enterprise Tax credit, which prevents companies from being taxed twice. The suspension of the credit would have the largest impact on profitable companies with large, well paid workforces.

“This new tax is a penalty on successful businesses,” said Bragdon “In difficult economic times, the last thing the state needs to be doing is discouraging profitable companies from coming to New Hampshire and discouraging those who are here to hire people.”

Rooms and Meals

A proposed 9% increase in the rooms and meals tax (from 8% to 8.75%) has also been targeted.

“This is the time when citizens of our state are cutting back on spending. Raising another tax will only hurt those businesses that need the money the most,” said Senator Jeb Bradley (Wolfeboro-R).

Tobacco Tax

Senate Republicans will also propose eliminating 45 cent increase in the state tobacco tax.

“We have raised the cigarette tax almost every year Governor Lynch has been in the officer,” said Sharon Carson (R-Londonderry). “Now is the time to stop raising taxes and start cutting spending.”

NH GOP - NH EDITORIAL PAGES SLAM DEMOCRATS' "IRRESPONSIBLE" BUDGETS

“Legislators — and Gov. John Lynch — are running away from reality. Lawmakers are heaping taxes on top of more taxes, while the governor is downshifting the cost of state government by denying cities and towns the aid they have historically received.”

-Foster’s Daily Democrat (5/31)

PORTSMOUTH HERALD: Tell State To Cut Spending

Editorial

May 31, 2009

• The Democrats Have Proposed Budgets That “Greatly Increase[s] Taxes”: “The N.H. Senate Finance Committee has passed an $11.5 billion spending plan that would, if passed, nickel and dime us on small expenses, greatly increase taxes on our struggling businesses, and add the clatter of 13,000 slot machines to help pay for our profligate spending. And it will do this without addressing any of the long-term budget busters waiting to blow up on us in the future when we no longer have $500 million in stimulus money or $100 million from an unused medical malpractice fund.

• The Democrats Have Refused To Focus On Cutting Spending: The one thing we are not seeing is any real restructuring of our state government to dramatically bring down spending. Granite Staters like to think of themselves as frugal Yankees but this is a myth. Look at how taxes and fees are climbing, factor in our high property taxes and the whole notion of New Hampshire as a low-tax paradise begins to fall apart.

• New Hampshire Does Not Need Gambling Or New Taxes To Balance The Budget: “The fact is we wouldn't need gambling or any of these new taxes if we could just bring our spending in line.”

CLICK HERE FOR FULL PORTSMOUTH HERALD EDITORIAL

FOSTER’S DAILY DEMOCRAT: Anti-Business Lawmakers Must Be Stopped Now

Editorial

May 31, 2009

• The Democrats Are Threatening New Hampshire’s “Business-Friendly Environment”: “New Hampshire’s New Hampshire's reputation as a state with a business-friendly environment is at risk. It might mean a slower recovery from the recession than was previously thought. We may be in for many more months of hard times. And it is all because of an irresponsible legislative proposal.”

• The Democrats Are “Afraid To Attack” State Spending: “The Senate Finance Committee wants the Legislature to suspend the business enterprise tax credit. Why? Because members of the committee and others in the Senate and House are afraid to engage in common sense government — afraid to attack the $11.5 billion budget for 2010 and 2011 from the spending side. The lawmakers have turned to what they see as an easy escape from the budget woes created by runaway spending and overestimations of revenues.”

• Governor Lynch And The Democrats Are “Running Away From Reality”: “The Legislators — and Gov. John Lynch — are running away from reality. Lawmakers are heaping taxes on top of more taxes, while the governor is downshifting the cost of state government by denying cities and towns the aid they have historically received.....

CLICK HERE FOR FULL FOSTER’S DAILY DEMOCRAT EDITORIAL

UNION LEADER: Budget Unreality: Spending Without Looking

Editorial

May 31, 2009

• The Democrats’ Budgets Increase Spending Instead Of Cutting It: “Each of these budgets is based upon the Dan Eaton Principle. During the House budget debate, Republicans objected to the leadership's plan to pass a spending bill first, then go for the tax hikes needed to pay for it. They said, reasonably, that the state should budget like families do, by first determining how much money is available, then deciding how to allocate it. House Majority Leader Eaton rebuffed the criticism with an aphorism: ‘It makes sense to know how much you're spending before you decide how much money to raise.’”

• New Hampshire’s Economy Will Be Devastated By The Democrats’ Budgets: “The economy is shrinking, prices are falling, and yet New Hampshire legislators are preparing to take still more money out of the already sputtering economy to pay for the budget they want but cannot afford to fund with existing revenue sources.”

• The Democrats’ Budgets Are Out Of Touch With “Reality”: “It must be nice to be able to budget without having to factor in reality or accountability.”

CLICK HERE FOR FULL UNION LEADER EDITORIAL

NH PoliticalNews - Democrats and Republicans To Go Head to Head in Legislative Forum, Monday, June 1 in Nashua

Nashua, NH – May 18, 2009 - Representatives of the Democrat and Republican parties will face off in a legislative forum on Monday, June 1, 2009 beginning at 6:30 p.m. at the Nashua High School North Auditorium. This forum is open to the public.

Republicans who will participate are Representative Pam Price (R-Nashua), Representative Peter Silva (R-Nashua), Representative Carl Seidel (R-Nashua) and former State Representative Stephen Stepanek (R- Amherst). Stepanek now serves as the Chairman of the Hillsborough County Republicans and the Granite State Taxpayers organization.

Democrats will be represented by Representative Cindy Rosenwald (D-Nashua), Representative David Campbell (R-Nashua), Representative Jane Clemons (D-Nashua) and state Senator Bette Laske (D-Nashua).

The forum will be moderated by Nashua Chamber of Commerce President Christopher Williams.

The format will begin with 30 minutes to cover three topics. Each panel will have 4 minutes to present their case on the topic with a 1 minute rebuttal from the opposition. The remainder of the forum will include a question and answer period with audience participation.

Senate Democrats Buckle Under Liberal Leadership

Concord, NH – Today, Senate Democrats offered a last-minute amendment linked to the gay marriage bill rushed through the State Senate last week.

“This is yet another instance of last-minute arm twisting and backroom deals to rush through legislation New Hampshire isn’t ready for,” said Senate Minority Leader Peter Bragdon (R-Milford), “hundreds of citizens testified at the public hearing on the bill and have not had a chance to voice their opinion on these latest changes.”

“Democrats are clearly buckling under pressure from their liberal leadership. This makes two last minute amendments that have not been publicly vetted, giving further reason for Governor Lynch to veto this legislation,” said Senator Sharon Carson (R-Londonderry).

“I call on Governor Lynch to veto HB 436, which is clearly not ready for prime time,” urged Senator Bragdon.

Today’s gay marriage proposal amends HB 310, relative to reimbursement of mileage for judges and marital masters. The Senate voted on gay marriage legislation last week, sending the bill to the House. The amendment would not require clergy, religious organizations, non profits and others to perform gay marriages against their religious beliefs of that organization.