Stop This Crazy Thing

The democrats have made their "next move" in the fiscal water boarding of New Hampshire.  LLC profits used as compensation will now be taxed like dividends.  On the face of it we are asked to see it as a fair and equitable change to place all businesses on the same playing field but don't be fooled.  

Fair has nothing to do with it. 

Government needs money to grow so the progressives (and some moderates) in the "grow government first party," will forever seek justification for their tactics. 

Democrats use the tax code to accumulate income for the State, but also as fuel to power their obsession with control and class warfare.  The more money they control the better their ability to wield the tax code to reward those who advocate the States agenda and punish those who oppose it.

The side effects of the lefts ongoing tax and spend policy are conveninet catalysts.  A decrease in new startups.  Business owners who close up shop.  People who take ideas and opportunities to other states.  Less overall revenue in the long term.  Reduced commerce.  Decreasing tax revenues (as a percentage) from other tax streams.  Fewer jobs in State. These are all means to an end.  That end is a justification for a wholesale change in the NH tax structure that will include a sales and income tax to stop the "uncontrolled bleeding" they fascilitated with their own policy moves.  That, as they say, is the ultimate goal of "fair' taxation, as if government robbing income earners of their labor by force of law was ever fair.

Sales and income taxes numb the taxed to the true volume of money the state is wasting while shifting development power away from the free market and into the hands of a state government.  They permit the state to make minor changes that shift significant market resources and power away from the people and into the hands of government.

Think of it as a secret identity for taxes.  As long as you have no idea who's really paying them all, why should you care quite so what they spend them on?  And the people collecting them are protected from political fall out so they can collect as much from as many places as they can find without fear of recourse.  But in the end millions of dollars are removed from residents and businesses and shifted into the hands of the geniuses in the state house. 

Local communities become whores of increasing state oversight.  They find themselves more and more reliant on the state for their revenue, so the state can string them out, dribbling resources for projects it values over those of the taxpayers that actually live there--for any reason the party in power can conceive, including political ones.   Because the money now comes to the state from so many places, there is no longer a tangible connection to the taxed and their money.

To resolve this, local property taxes will have to increase to provide municipalities with some ability to affect local change that they can't eek out of the growing state bureaucracy.   But even as local taxes rise the state will continue to accumulate revenue.  With local governments finding ways to fend for themselves the state will spend what they have on growing the state unions to secure their power.  More government we never really needed but will now forever have to finance.

Now some will object to my thesis.  But to them I ask, show me where this has not been the case in every other state that has walked this path?  The answer to that is simple.  They can't.  Massachusetts, New York, Michigan, California, are all shining examples of the failure that comes from walking this path.

So the liberal tax and spenders in the grow government first party have sent yet another message to the business community in New Hampshire.  We've got no problem changing any terms at any time to suit our ends at your expense.  We have an agenda to fulfill and as long as you try to prosper without us taking a larger and larger cut, we can't get there from here.

The people of New Hampshire, to quote George Jetson, need to stop this crazy thing.