NH Watchdog – watching and growling….

I enjoy going over to NH Watchdog – and the last couple of days, a must read for two reasons:

He shows the best of what a determined web-based journalist can do with off the shelf technology and a persistence "to get" an opportunity. In this case, a video with Minnesota Governor Tim Pawlenty:

A couple more exclusive videos here as well.

The other was live blogging the recent hearing on the "secret’ tax hike on most NH businesses – LLCs. This protest was started by Andy Sanborn and Andrew Hemingway, it drew 400 or so folks to the only hearing that has been scheduled for this retroactive tax that will hit the small businesses that are NH’s economic engine.

Normally, I don’t do this kind of blogging, but no one else in NH has covered this in as much detail (hey, what are bloggers for!) as Grant Bosse has, so let’s go first to last:

The kickoff post was a quick report on Tom Thomson’s column:

Tomorrow, New Hampshire will hold the only public hearing on the new 5 percent tax on limited liability companies (LLCs) and partnerships. The hearing will be at 10 a.m. at the Department of Revenue Administration’s Concord office at 109 Pleasant St.

This past June, when the Legislature was voting on the state budget, some powerful Democrats decided to slip into the bill a 5 percent interest and dividends tax on individuals for any distributions they receive from an LLC or partnership. This is an income tax!

Then he covers Governor Lynch’ (yeah, weak) attempt to defend this tax grab

Lynch said the changes were appropriate, and will put businesses on a more level playing field. Right now a company that incorporates pays one sort of tax, an LLC pays another, he said.

“I do believe it is closing a loophole,” Lynch told about 75 members of the Business and Industry Association.

This past Wednesday, the DRA (Dept. Of Revenue Administration) had it’s hearing, and Grant went wall to wall starting with this:

Restaurant owner Andy Sanborn just received a prolonged standing ovation from the crowd for his remarks. Sanborn says the DRA has failed to give consideration to the 55,000 New Hampshire residents who are currently unemployed, and the thousands of New Hampshire small business owners who worked for years without taking any money out of their businesses, only to be taxed now for their success.

“The small business community defines us. It’s how we live. It’s who we are,” Sanborn added.

Followed by Tom Thomson ‘s testimony:

Tom Thomson, who wrote a column opposing the new LLC tax in yesterday’s Union Leader, testified by quoting from the landmark Supreme Court case McColluch vs. Maryland that “the power to tax is the power to destroy” and argues that New Hampshire is about to destroy its LLC’s

He also enumerates:

the BIA testimony

Corey Lewandowski (State directory of Americans for Prosperity)

Former NH State Senator George Lovejoy:

Former State Senator George Lovejoy says he’s sad that New Hampshire is changing its tax policy from “Ax the Tax” to “Tax the Ax”. He says the new tax on LLC’s amounts to the introduction of an income tax on New Hampshire small businesses.

Former DRA Commissioner Phil Blatsos

Former NH State Senator Bob Clegg (who highlighted the present Commissioner, Clougherty, statement "…I’m going to go after everybody."

Current State Senator Jeb Bradley – we’re going to repeal this as "the New Hampshire Advantage will be lost."

More complaints on the timeliness and vindictiveness of the hastily done law – what is "reasonable compensation"?" and this will force companies out of NH

"Smaller by the minute": an discourse by the owner of one of my favorite restaurants: T-Bones

Tom Boucher owns T-Bones and Cactus Jack’s restaurants. He says rather than pass a new tax to create “fairness”, he would have rather spent his day creating jobs. He says by opening his 5th and 6th restaurants in the state, he is creating jobs. But he says the Legislature has made it harder by increasing the tip wage, increasing the Meals and Rooms Tax, increasing Unemployment Taxes, on top of the rising costs of health care and advertising. He says the hospitality industry is the top tax payer in New Hampshire, despite being dominated by small businesses with small profit margins. Boucher argues the LLC Tax will stop growth in the hospitality industry, and that his company is forced to reconsider its expansion plans, and put them on hold. He says “small business is getting smaller by the minute.”