NH House Budget Takes A Lot of Money From Your Household Budget

The New Hampshire budget takes a bite out of your household budget

The House budget that came to the floor Thursday 4/11/19 will increase spending by over $1.5 billion. The result of the profligate spending is that this budget is forced to also include $417 million in new taxes. Comparatively, what this means is that the total taxation in this biennial budget is an increase of 16.8% over the FY 2019. The state is giving itself a pay raise of 16.8%.

Are you getting a similar pay increase? If your taxes go up by 16.8% and your pay does not go up by at least that amount your household budget just took a hit. What will you be doing without?

This budget is an affront to anyone who embraces economic reality. New Hampshire’s low tax status is a benefit to our economy. It attracts new business and helps retain established businesses. Businesses are the reason the state has anything to tax. Without business there are no jobs, property values plummet, people go hungry and get very cold.

This trip down Socialist Road is destructive; just ask Connecticut. The House budget is an extravagant waste of taxpayer funds. Two things in this budget make it particularly pernicious. Those two things are reversal of business tax rate reductions which led to increased revenue and spending one time money to expand ongoing programs.

Tax policy has an impact

Reversal of the business tax rate reduction already on the books is a reversal of tax policy. This sends a message that New Hampshire is not open for business. It shouts that New Hampshire cannot be counted on as a reliable partner to maintain a steady course in tax policy. Business needs stability to be able to plan and prosper.

That the House budget spends one time money expanding ongoing governmental programs is a simply myopic decision. This is problematic because New Hampshire has a list of capital needs which can put the one time funds to use in advantageous ways. This budget will leave those things undone. Programmatically, by expanding programs without having an identified ongoing revenue source New Hampshire sets up her future budgets for large, unnecessary program cuts when the known funding shortfalls occur.

This House budget sends a clear message to innovators, entrepreneurs and job creators: You are not welcome in New Hampshire. If New Hampshire does not retain its business friendly environment; not only will her population not grow but her economy will take a hit. Without a strong economy New Hampshire will not retain her young people. They will leave in droves because of lack of opportunity.

Conclusion:

Elections have consequences. The question is: Do you like the consequences of the last election? If not, what are you going to do about it?