NHGOP BLASTS HASSAN ADMINISTRATION'S NEW HOSPITALITY INCOME TAX

Concord – New Hampshire Republican State Committee Chairman Jennifer Horn today blasted Governor Maggie Hassan for trying to impose a new tax on New Hampshire’s hospitality industry. The Union Leader reported today that the Hassan Administration is trying to reinterpret existing tax rules to force New Hampshire restaurants and food establishments to pay a new income tax on tips collected by food servers. Since Hassan became governor, the New Hampshire Department of Revenue Administration has started to harass restaurants with audit letters:

“The Hassan Administration’s new hospitality income tax is a backdoor attempt to squeeze more money out of New Hampshire’s business community to cover the reckless spending increases in the governor’s irresponsible budget. This onerous new tax places an even greater burden on our hospitality industry that will kill jobs, reduce wages for restaurant servers, and crush small businesses.

"On Governor Hassan’s watch, the New Hampshire Department of Revenue Administration is trying to bully and intimidate restaurants with harassing audit letters regarding the new tax. It should come as no surprise that the Hassan Administration would use such outrageous tactics given the governor’s previous attempts to force businesses to pay more taxes. As a state senator, Hassan spearheaded the effort to create and implement the job-killing LLC income tax that would have devastated New Hampshire’s small businesses.

“In 2010, Republicans stood up for New Hampshire’s job creators and successfully killed Hassan’s LLC income tax. Today, Republican senators are fighting to block Hassan’s new hospitality income tax and end her latest assault on our business community.”  

AFPNH - More taxes?

On the heels of tax day, the next piece of legislation on the Senate floor will be one that allows states to tax businesses that aren’t even within their borders. This bill would allow states to tax online sales from companies in other states, shifting the tax collection burden onto out-of-state businesses. It’s a bad, convoluted policy and one free market advocates should oppose.

 Click here to email your Senator to tell them to stop the Internet sales tax burden

The so-called Marketplace Fairness Act has serious logistical, economic and constitutional flaws. Even the Supreme Court has ruled that states can’t tax companies that aren’t located in their borders and don’t have a sufficient nexus (such as a distribution center). The cost of complying with the Internet sales tax would be an enormous burden on businesses, especially small businesses.

To make matters worse, Senate Majority Leader Harry Reid is fast-tracking the bill to the Senate floor in order to limit debate. Senators haven’t even held a committee hearing yet. Bills of this magnitude should go through to the normal committee process—not rushed to the Senate floor.

Click here to tell the Senate to stop the Internet sales tax burden

In Liberty,

Nicole Kaeding

State Policy Manager

Americans for Prosperity

NH Senate Finance Chairman Morse Statement on Passage of House Budget Bills

The New Hampshire Senate

Majority Office

Senate Finance Chairman Chuck Morse (R-Salem) issued the following statement today after House passage of HB1 and HB2, the biennial budget bills:

“While it represents an improvement over the Governor’s original budget submission, the House’s budget still increases spending by nearly a billion dollars while relying on inflated revenues.  Between inflated Medicaid Enhancement Tax (MET) revenues – which were criticized by the state’s hospitals – as well as increases in the gas tax, tobacco tax and others, the House budget looks to spend millions of dollars in revenues the Senate will not approve and the state should not expect.  I also have concerns with a number of policies included in the House budget, such as allowing the Governor significant latitude to raid dedicated funds as well as the suspensions of the newly enacted school building aid program and job-fostering business tax reductions.

“Beginning next week, Senate Finance will take a fresh look at the budget in an effort to create a document that funds state government within our means while protecting the reforms implemented last session.  At this time, one thing the House can do to make that process slightly easier would be to take up and pass SB152, which would provide the state with millions in non-tax revenue allowing us to fund our priorities, from education to infrastructure, without increasing taxes on New Hampshire citizens.”

NH House Republican Leaders Comment on Passage of Fiscally Irresponsible Budget

CONCORD – House Republican Leader Gene Chandler (R-Bartlett) and Ranking Republican on the House Finance Committee, Rep. Neal Kurk (R-Weare), offered the following comments in reaction to the passage of HB1 and HB2, the bills dealing with the State budget.

Rep. Gene Chandler (R-Bartlett), House Republican Leader

“When 40,000 people in our State are looking for work, this budget will squeeze an additional $39million out of our small businesses that they would have otherwise been able to reinvest to grow and create jobs. When incomes are stagnant, this budget raises the gas tax, tobacco taxes and down shifts costs that will raise property taxes. When our roads and bridges need attention, this budget diverts and additional $27million from the highway fund to other agencies. When our economy is struggling to grow at 2% per year, this budget grows government by more than 5% per year. It’s not a logical plan to grow our economy.”

“Republicans have fought for a more affordable, more efficient and more accountable state government, but being in the minority, we don’t always win. The majority party, unfortunately, has created and passed a budget that overspends, expands government and adds taxes and fees on our already over taxed families and businesses. This is not the right direction for New Hampshire. House Republicans will continue to bring attention to what we believe are better ways to help our citizens and our economy.”

“Today, Republicans offered several amendments to make reasonable changes to the budget, all of which were defeated. Unfortunately, the majority party does not seem interested in listening to New Hampshire citizens or observing what is happening in the real world outside of Concord.”

"Our amendments included provisions to avoid downshifting costs to county governments, which would avoid higher property taxes. It was rejected. We offered to restore school building aid, which was also rejected. Amendments that would have prevented the raiding of dedicated funds, such as LCHIP, State Parks and other funds were also defeated, giving the Governor carte blanche to turn these fee based funds into taxes by funding general government. Our amendments to keep school choice tax credits and continue funding for new charter schools were denied. Lastly, our efforts to lessen increases in the tobacco tax and keep in law business tax reforms set to take effect this year fell flat. These amendments failed not because they were unreasonable or egregious, but  because the majority party doesn't seem interested in creating jobs, a friendlier business climate, and lowering the tax burden on our citizens."

Rep. Neal Kurk (R-Weare), Ranking Republican on House Finance

“This budget is balanced on unrealistic revenue estimates that simply put off the eventual day of reckoning. It includes millions in increased taxes on working families and businesses that will hurt the economy and job creation. It spends 10.2% more money than the previous state budget. This budget also increases the state’s exposure to massive future liabilities as a result of expanding Medicaid. It suspends new school building aid imposes a moratorium on charter schools. It shifts costs of nursing home services to county property tax payers. It  purposefully underfunds line items that can be paid for later, outside of the more transparent budget process. We have a real concern about where this budget will lead our State. It’s unaffordable and sets us up for failure both in the short and long terms.”

NHGOP STATEMENT ON THE PASSAGE OF THE HOUSE DEMOCRAT BUDGET

Concord – New Hampshire Republican Party Chairman Jennifer Horn released the following statement today on the passage of the House Democrat Budget: 

“The House Democrat’s irresponsible budget raises spending by over 10%, hikes taxes and fees by over $200 million and unloads $39 million in taxes on the backs of New Hampshire’s small businesses. During these difficult economic times, the last thing Democrats should do is to pass a budget that will kill jobs, hurt economicgrowth and take more money out of the pockets of working families.

“The disastrous budgets proposed by Governor Hassan and House Democrats blatantly disregard the traditional New Hampshire principles of low spending and limited taxation. They both include an unsustainable increase in spending that will grow government and lead our state down a path towards fiscal insolvency. 

“Governor Hassan and the House Democrat Leadership have both demonstrated that they are incapable of providing the type of sound fiscal stewardship that Granite Staters expect from their elected leaders in Concord. Instead of working to make state government more efficient and able to live within its means, they have decided to fund their irresponsible policies by placing an even larger burden on New Hampshire families and small businesses."