November 8, 2008
Seacoast Online
PORTSMOUTH — Members of the newly-elected legislative delegation told local business leaders Friday that it is time to rethink the tax system in New Hampshire and they would support a broad-based income tax in the state.
Fresh off another Democratic sweep of the seven House seats that represent Portsmouth and Newington in Concord, six of the members met with the Greater Portsmouth Chamber of Commerce government affairs committee to discuss the next session’s agenda. The most immediate priority that must be addressed is the potential $150 million budget shortfall that will accrue if nothing is done between now and the end of the fiscal year next June. Gov. John Lynch is working with state agencies to reduce expenses and limit any shortfall.
Study-group committees have been working throughout the summer to find new sources of revenue, which would likely impact the next biennial budget. There is strong support in the Portsmouth delegation to implement a broad-based tax that would be a more equitable revenue source.
“You constantly hear that New Hampshire is so great because we don’t have a broad-based tax, when in fact we do — it’s the statewide property tax,” said Rep. Paul McEachern. “I’m favor of an income tax based on your ability to pay, rather than the house you live in, that is dedicated to education.”
McEachern’s fellow legislators fell largely in line with his stance.
“I think it’s time we act a little more responsible in how we look at our tax structure because right now it’s not fair,” said new Rep. Rich DiPentima. “It overburdens the low and middle class, who pay a much larger percentage of their income in taxes than wealthier people. That’s not healthy for our economy.”
“We’re among the lowest in all states in overall tax burden, but among the highest in property tax burden,” said House Speaker Terie Norelli, “I think the message here is ‘who are the people paying that heavy burden?'”
Lynch, however, has said he will veto any sales of income tax that comes to his desk. Lynch’s press secretary, Colin Manning, reiterated that stance Friday. “The governor doesn’t feel it’s the right choice for New Hampshire … right now he’s looking at spending reductions which he will present before lawmakers in a couple weeks.”
The legislators said they would like to have an open dialogue with the chamber and their constituents about the issue, possibly in a forum like Portsmouth Listens. Committee members said they would like to see that.
Chamber President Doug Bates told the legislators he’d like to see them talk more about how they plan to cut expenses and consolidate resources.
“I think we’re going to have to make equal effort to reduce expenses,” said Bates. “We need to find creative ways to spend the money we have on all levels.”
Rep. Laura Pantelakos could not attend the meeting.