Democrats Finally Admit Their Budget Raises Taxes - Granite Grok

Democrats Finally Admit Their Budget Raises Taxes

Last Friday, Governor Sununu met with Democrat leaders to talk about the continuing budget impasse.  Today is day 46 of the state operating under a continuing resolution, for those keeping score at home, and the Democrats really had some wild ideas on how to solve the budget veto.

Now, by the democrats own admission, operating under the continuing resolution has saved the state taxpayers approximately $14.7 million.  In 46 days.  Of course, republican estimates of state cost savings are much higher – but I digress.  By their own admission, the state saves nearly half a million dollars PER DAY that we DON’T adopt the democrat written disaster of a budget.  Actually, I’m wrong – by their admission we’ve saved $22.2 million since the veto of the budget, because the LBA doesn’t account for their across the board Medicaid rate increase.

In a written proposal to help solve the budget showdown, the democrats proposed two things.

1.) Use half of the savings to provide a tax credit to those businesses who filed estimated returns in quarter one and quarter two of 2019; proportional to the amounts estimated;¹

¹ It is unclear and indeterminate how many and which business estimated payments at which levels; i.e. either 7.9% or 7.7% on the BPT, for example.  The fairest resolution is a tax credit proportional to the estimated payments.  For example, if CR savings with forgoing the first 3 months of Medicaid rate increases ended up being $20M, then $10M would be in tax credits next spring.  Is business A paid 10% of total estimated payments in quarters one and two then business A would get a $1M credit, which equals 10% of the CR savings.

Just to clear up any confusion – the democrats’ budget RAISED (not held stable, important distinction) the business tax rates that are already in effect for 2019.  Their proposal is to use the taxpayers’ savings (yes, the savings belong to us, as taxpayers) over the past month plus to “credit” any business that has paid quarterlies.

I – jeez – I really don’t know how to tell you how insipid this is.  BUT – the democrats have admitted that they’re raising tax rates, finally. FINALLY!  For months we’ve heard from them about how they’re going to stabilize, flatten, or hold the tax rate – but the reality is the tax rate dropped on 1/1/2019 and we at long last have a written admission from the democrats that they did exactly what we republicans have said all along — they RAISED tax rates on businesses.  Not explicitly, no, but by granting that anyone that’s filed a quarterly should be granted a credit in the amount of their underpayment the tacitly did exactly as we’ve been saying.

I could get more in depth on this, but suffice it to say that their idiocy runs deeper – since the tax credits would be divided evenly amongst the dollar amounts businesses paid in quarters one and two.

Perhaps the leaders of the democrat party ought to stop trying to raise taxes on business owners in New Hampshire?

On to their second request – err – demand;

2.) Use half of the savings from the CR as a set aside to fund the eventual state employee contract, with any remaining amount of this half going to the General Fund.

So, let’s take half the SAVINGS from not adopting their budget, and use it to pay state employees.  On it’s face it may sound like a half decent idea, until you realize that these state employees will have to be paid this same amount every year, if not more.  You can NOT use one time savings to fund continuing obligations! That’s how we ended up in this budget showdown to begin with!

These pea-brain democrat leaders really have lost it.  I can’t imagine why on earth these ideas didn’t convince Governor Sununu to adopt their budget.

The letter/proposal was signed:

Speaker Shurtleff; Senate President Soucy; Chair Wallner; Chair D’Allesandro; Leader Ley; Leader Feltes

Poor Gubernatorial Candidate Dan, with his name last.  How sad for him.