Republicans Fight to Hold off Tax and Fee Increases

Democrats Push Through Increases to Support 16% Budget Increase

Concord —One by one, Republican attempts to amend the House Budget Trailer Bill (HB2) and prevent a multitude of tax and fee increases failed today in Concord .  Republicans stood united in opposition to the Democrat majority’s tax and spend budget which includes $223 million in tax and fee increases that translates to an increase of $142 for each man, woman and child living in New Hampshire.

“This budget includes higher taxes and higher fees that will have an adverse affect on every taxpayer and a negative impact on the New Hampshire advantage,” said Republican Leader Michael Whalley (r-Alton).  “I am proud of our Republican caucus for holding firm to our fiscal conservative values our 2006 campaign promises of fiscal responsibility.”

Republican members brought forth several floor amendments in an attempt to shine a light on specific tax and fee increases contained in the Trailer Bill.  Representative Gene Chandler (r-Bartlett) spoke out against a registration fee increase of $6 per car and $200 per heavy truck.  “Motorists are already facing higher fuel costs as are New Hampshire businesses that rely on the trucking industry. This fee increase will only hurt our citizens and business community.” said Rep. Gene Chandler (r-Bartlett).

Republicans first attempted to reduce the Democrat-proposed increase in the cigarette tax from 45 cents to the 28 cents originally proposed by the governor. “No matter which way you look at it, we are making smokers tax-scapegoats.  This will not result in less smoking, but rather will hurt the small businesses in the state,” said Rep. David Hess (r-Hooksett).  Another amendment was offered by Republicans to eliminate the 45 cent increase altogether, but was defeated by the Majority party. Democrats are penalizing those that can least afford it.  This tax increase will not only reduce out-of-state cigarette sales in New Hampshire , but will also create a $152 million loss in sales and other goods and services as a result,” said Rep. Kevin Waterhouse (r-Windham).  New Hampshire sold 8.3 million fewer packs of cigarettes following the 28 cent increase during the last biennium while, at the same time, Massachusetts increased sales by 7.3 million packs.

A floor amendment to eliminate the 4 percent increase in the Real Estate Transfer tax, which is already the highest in the nation, was also defeated by Democrats.  The additional revenue will be dedicated to funding LCHIP.  “We all believe in LCHIP as a great program.  I am one of its biggest advocates.  But this tax increase is the wrong approach,” said Rep. Neal Kurk (r-Weare).

Republicans also attempted to overturn an education formula proposed by the Democrat majority that would give communities their current funding level plus 5 percent or their projected 2008 funding level, less 5 percent, whichever is higher.  “This is an arbitrary and capricious formula that has no logical, rational or methodical distribution formula,” said Rep. Hess.  The Democrats’ education funding formula would give more money to rich communities like Bedford and Amherst while taking away money from the poorer communities such as Claremont and Pittsfield .  “It would also be irresponsible to change the education funding formula after most of our towns and cities have passed their school budget,” added Hess.

“It is unfortunate that the Democrats have turned their backs on New Hampshire taxpayers and businesses with their actions today,” said Rep. Chandler.  The Republican minority was prepared to offer alternative budget language in order to send a balanced budget to the Senate for their consideration.”

“This budget penalizes our poorest citizens and our poorest communities.  And this coming from Democrats,” concluded Rep. Neal Kurk (r-Weare) of the House Finance committee.

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