As seen in seacoastonline.com on July 16, 2019.
By: Daniel Gray, Treasurer
June 11, 2019
To the Editor:
We live in one of the few states without a sales tax or an income tax. Politicians on both sides of the aisle tout this as a major advantage our state has over its neighbors. Low tax burden encourages household wealth and prosperity across all economic classes. As a result, not only does New Hampshire boast one of the highest median annual incomes in the US, but our state also boasts the lowest poverty rate in the country (with fewer than 8% of our residents below the federal poverty line), and a phenomenal 2.4% unemployment rate.
The vector our economy has traveled under Governor Sununu has produced a healthy, growing business climate, and has provided prosperity for our residents. Continuing on a proven path is the logical solution.
The NH Budget proposal championed by Dan Feltes reverses that course by increasing taxes on businesses.
The common political phraseology behind this is "we're taxing corporations to make them pay their fair share." (We've heard this plenty at the national level, haven't we?) Or, in response to the latest budget veto, Senate President Donna Soucy, D-Manchester, said that "It's deeply discouraging that the governor chose...to put big business before the people of New Hampshire". Those on the left that promote this do so with pride, a sin that can only be explained through a fundamental misunderstanding of economics.
It is important to understand that by increasing taxes on (big and small) businesses, taxes are raised on their books. The taxes are paid by people, not some abstract concept of "corporations"; either the stockholders, the customer, or the worker will pay the bill. Any well run business (big or small) will accomplish this by raising prices of their goods and services, by lowering the starting wages of new hires, or suspending raises throughout their companies.
An increase in business taxes will only result in that cost being passed down to the workers or the consumers. This hurts the very people that the left claims to protect and fight for. By contrast, decreasing taxes have provided wonderful consequences in our state: high median income, low unemployment, and lowest in the nation poverty rate. Low corporate taxes do not put corporations or businesses before the people of New Hampshire, they foster a healthy and prosperous economy for us all.
Rockingham County Young Republicans, Treasurer