Longtime New Hampshire Democrat Susan Almy is doing her part to raise taxes. She’s introduced a legislative proposal to raise taxes on job creators. But she’s also got a bill in the pipeline that would appear to give the Legislative Fiscal Committee taxing powers independent of the Legislature.
Almy’s second bill would empower the Legislative Fiscal Committee to either repeal or adjust the BPT rate if the state’s rainy day fund is in jeopardy due to decreases in revenue. The exact language has to be worked out, but Almy would want the stopgap to kick in if revenue falls short of expectations, forcing the fiscal committee to tap the fund to provide basic services.
Related: Remembering Democrat Rule
Hint: Revenue is guaranteed to ‘run short’ of “expectations”
Republican majorities estimate revenues then look at spending priorities. Here’s what we have. Let’s look at our spending priorities and see how to make it work. Democrats do the opposite.
Past Democrat majorities in New Hampshire begin by deciding how much they want to spend. It is always a huge sum. Democrats have no spending filter. There is “no” enough. They then estimate revenues to cover the cost of their spending. When the revenues fall short, and they always must, they use the shortfall to justify tax hikes on everything and anything. Sometimes they just lie and add taxes then demand more.
In either case, we will always see a “decrease in revenue” because the estimates will never be in line with reality. And any committee empowered to adjust the rate at which businesses are taxed will simply raise the tax.
Job Creators Need to Speak Up Now
Almy’s Democrat fraud is not subtle nor is it crafty. But it thinks it is. The Business Profits Tax (BPT) has been dropping in planned increments for two years, thanks to Republicans. It is slated for two more reductions. The Business Enterprise Tax (BET) is on a similar reduction arc as the BPT. Almy’s proposal, by claiming to leave the BET alone pretends to be a fair tradeoff.
It is not.
The State’s economy is in record territory thanks to both tax cuts. Employment is at historic levels. Young people are moving here for jobs. Business tax revenue is beating projections and creating surpluses. All of which will vanish when the Democrats write their budget — new spending that will overestimate revenue to create a shortfall.
If her tax scheme fails this session, the shortfall will stand as evidence to push it in the next session.
Job creators and their employees need to speak up in opposition. While Republicans should have the votes to prevent a veto override Democrat opposition improves the odds. A rare circumstance gave that House leadership likes the cut of this plans gib.
They will pressure their caucus to vote in lockstep with leadership. If you can’t convince your representatives otherwise, the odds are no longer as good. Business taxes will rise. Employers will see this as a sign that New Hampshire is not a stable place to do business. And that will be the end of our exceptional economy for years to come.
As for granting a committee taxing power I doubt it is constititonal. But that didn;t stop past Democrat majorities form handing taxing power over to out-of-state third parties when we “joined” RGGI. In otherwords where there is a will there is a way. And Democrats have the will.