Down in Concord

“Three groups spend other people’s money: children, thieves, politicians. All three need supervision.” — Dick Armey

There is an old fable about a scorpion asking a frog to carry him across a river. The frog is afraid of being stung during the trip, but the scorpion argues that if it stung the frog, the frog would sink and the scorpion would drown. The frog agrees and begins carrying the scorpion, but midway across the river the scorpion does indeed sting the frog, dooming them both. When asked why, the scorpion explains that this is simply its nature.

It seems that it is the nature of Democrat politicians to raise taxes and fees. Taxpayers, especially those of us with lower incomes, are the ones who get stung. The Democrats previously passed five bills to increase taxes or fees. As part of their budget they increased six other taxes or fees.

Democrats increased by 25% a tax on fuel oil. They made permanent a “temporary” tax increase they originally passed in 2009 that doubled boat registration fees. They raised a license fee for youth skill camps by 300%; increased the cigarette tax by 30 cents per pack; and increased the gas tax by 67%. On all of these bills Democrats voted more than 90% in favor of an increased tax or fee, Republicans voted more than 90% against the tax or fee increase.

The Democrats’ budget delays for a year – and nobody should be surprised if next year they delay it again – a business tax reduction dealing with loss carry-forwards. That change would have been especially useful for high-tech R&D firms. Don’t we want more such companies to come to NH? Their budget similarly delays two other business tax reductions.

They increased the fee for a marriage license and the fee for a saltwater fishing license. They stung property tax payers by downshifting costs for the county nursing homes. Which brings to mind one other change that will sting county property tax payers. The House Democrats and the Governor have indicated that they will adopt expanded Medicaid. This will cost the state tens of millions of dollars, and will also cost the counties millions of dollars. The counties lose money on every Medicaid patient – more patients means more losses, which the county property tax payers have to make up.

On a normal day, the House deals with about 30 bills. Last Wednesday it had only the three budget bills to deal with, but it still took almost all day. What took most of the time was debating 16 separate amendments to HB 2, which has all of the changes to law necessary to make the spending numbers legal. For example, current law says that not less than 73% of the Highway fund will go to the department of Transportation. The Democrats wanted to spend only 67% of the fund on actual highways, so they wrote in HB 2 a section which says that it is okay for them to break that part of the law.

The first proposed amendment was to delete the downshifting of county nursing home expenses. The Democrats are shifting $11 million in expenses from the state to the counties. The cost to property tax payers of Sullivan county will be approximately $400,000. Republicans opposed downshifting; Democrats voted for raising your property taxes.

The Governor and House Democrats want to spend more money than the state will collect in revenue. They propose to make up the difference by raiding so-called “dedicated” funds. These are funds set up for a specific purpose. E.g. a part of the motorcycle license fee is intended to be used for motorcycle safety training and nothing else. Democrats want to use these funds as piggy-banks to pay for all sorts of other things. Their budget authorizes the Governor to raid any and all funds as she deems appropriate.

Republicans proposed to mark just one dozen of these dedicated funds as off-limits. Money in those funds could be used only for the specific purpose for which people paid the fee, not raided for unrelated purposes. These dozen funds were intended for such purposes as: dam maintenance, the 911 system, unemployment compensation, the Land and Community Heritage Investment trust Program (LCHIP), and search and rescue. Fifteen Democrats crossed over to vote with the unanimous Republicans but they fell just one vote shy.

Other amendments would have deleted the three increases in business taxes, deleted the increased license fee for saltwater fishing, reduced the 30 cent increase in the cigarette tax to 20 cents. Republicans were concerned that such a large increase in the cigarette tax would hurt small businesses near the borders where people from neighboring states come to save money. Republicans almost unanimously voted for lower taxes and fees; Democrats almost unanimously voted for higher taxes and fees.

It should be no surprise to anybody that the Democrats have new taxes, higher taxes and fees, and that they have much higher spending. It is mildly surprising that they have absolutely no new spending on roads and bridges. They sold the new gas tax on the basis that it was needed to repair our crumbling infrastructure. But their budget actually spends LESS on the department of Transportation than last year’s budget spent. It’s almost as if the Democrats didn’t really believe their own talking points.

Advertisements