You can’t have too much taxation
In the first 10 weeks of the 2019 legislative session, the New Hampshire House of Representatives passed nearly $310 million in annual tax and fee increases. That is exclusive of the changes in subsidy levels for green energy which will significantly impact your electric bill. So how much of an increase is $310 million dollars per year? Obviously it will be $620 million dollars or more, over last biennium. But how much does that raise in taxes and fees as a percentage?
What percentage increase is enough?
The revenue plan at the time of the last biennial budget called for the state to collect $2.301 billion in taxes and fees in FY 2017. Based on the increase over the prior plan the change we will see is 13.47% increase in taxes and fees. That’s the $310 million in increases divided by the $2.301 billion in the FY 2017 Plan. Are wages going up 13.47% per year? Is the economy expanding at a 13.47%? How about population growth, is that at or above 13.47%? Is this a prudent and realistic plan for New Hampshire? How exactly does it contribute to the NH advantage?
Can we cover that tax increase with enough spending?
In the same 10 week period our legislature is adding $565 million in new spending. How is it responsible to increase spending by $565 million while only increasing taxes by $310 million? Simple arithmetic used to say that would make the budget unbalanced. $565 million take away $310 million equals $255 million. This means the legislature intends to unbalance the budget by spending $255 million more than it will take in. Good bye rainy day fund…
You don’t need those dollars in your family budget
The biennial budget is still a work in progress. But… the hand writing is on the wall. What is being worked on does not pencil. The plan grows government far faster than the rate of growth of the population. It is grows government far faster than the economy. The result will take a huge bite out of our family budgets. It transfers spending to state government while further limiting our personal and business financial choices. These are dangerous trends… unsustainable trends.
Conclusion:
This is what passes for Democratic governance.