The Live Free or Die State is anything, but -New Hampshire’s State Budget is top-heavy with Federal Money. This dependence is embarrassing and debilitating, but recent tax cuts have produced a wave of new revenue. And cutting more taxes sounds great, but I may have a better idea.
Well, two of them, actually.
First, the good news that’s bad news.
Despite reducing business tax rates, we’re still overtaxing job creators.
From Fiscal Year 2012 through Fiscal Year 2021, business tax revenues exceeded budget projections by $649.6 million — or 100.1 percentage points.
That is, over that time businesses gave legislators an additional $649.6 million to spend beyond what lawmakers had budgeted.
Imagine if, over a decade, your largest source of income came in at double what you had budgeted for it. That’s what happened to state business tax revenues from FY 2012-2021.
State Fiscal Year 2022 began last July, and so far the trend continues.
The good news is, cutting taxes continues to produce the inverse of what Democrats predicted. They swore we’d lose money if we cut taxes again, and political pandemic interference aside, we ended up with more than projected. The bad news is, we ended up with more than projected.
Taxation is theft.
NH cut business taxes again, lowered the rooms and meals tax, increased the amount of money returned to cities and towns to help lower property taxes, and that’s all great. Not all of that is reflected in this increase, but we need to do more of that.
Democrat states have proven that raising taxes leads to more government spending, which means raising taxes or adding new ones. It is a cycle of dependency that harms everyone but the government.
That means we should also cut spending and our addiction to federal money.
That fiscal ship is sinking. There may be no way to stop that. When it goes, all those federal dollars marketed as “love, caring, affection, compassion, ” or whatever BS labeling they’ve managed to stick to it will disappear. Maybe just some of it, if not all of it.
It is not a reliable revenue stream, and it is based on bilking future generations not yet born. We need to cut these cords as many as we can. So, while I’d love to see more tax cuts, I’d truly love to see less dependency on federal money or the programs used to force us to dance to their tune.
There’s nothing free about that, and we need to solve that problem before it forces us to do it.
One more point.
If Democrats get back into the majority, they will solve the happy “problem” of excess revenues by increasing spending. Revenues are, after all, only over-projection because we didn’t spend them.
The solution is to overspend. To plan for overspending to eliminate any chance of ever raising extra revenue.
Democrats always do this and then claim they need more and higher taxes and more dependency on the central planners in DC, who could care less about the New Hampshire Advantage or what having it means to Granite Staters.
Not that local Dems care any more than their DC masters. They only know how to sing one song, and you’re paying for it whether you like that or not. SO, I guess I have three suggestions, the last one being – keep Democrats out of office, or we’ll never Live Free, or even in any proximity to whatever that means.
