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| Estate, cap gains taxes part of NH House budget |
| By MSN News - Money Central |
| Published: 04/03/2009 |
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CONCORD, N.H. (AP) - The New Hampshire House will vote next week on an $11 billion, two-year budget that would impose new taxes on the rich and a small across-the-board spending cut. The House Finance Committee voted along party lines Wednesday to recommend the package that cuts some department budgets to 2008 levels. Democrats pushed through a series of tax measures to avoid making deep cuts in social services. That still didn't balance the budget, so they proposed an additional 1.25 percent cut in agency budgets. The House budget would spend about $31 million more, or about 1 percent from general taxes, than the previous two-year budget. They recommended increases in existing taxes on dining out, renting hotel rooms, gasoline and diesel, cigarettes and new taxes on gambling winnings, a 5 percent tax on capital gains above $5,000 and an 8 percent tax on estates larger than $2 million. They also proposed freezing an insurance tax scheduled to decrease. Republicans tried and failed to substitute a $324 million, across-the-board spending cut for the tax increases. Republicans acknowledged they supported most of the budget, but felt deeper cuts were preferable to raising taxes. "There are different ways to solve the state's problems. Let the people decide in 2010 which approach (they) preferred," Weare Rep. Neal Kurk, the ranking Republican, said of the next election. Former Republican House Speaker Douglas Scamman insisted the combination of taxes will force the wealthy to move to states with more favorable tax laws. Finance Chairwoman Marjorie Smith repeatedly reminded the committee everyone will share in the pain — wealthy and poor. Rankled by Republican criticism, Smith said she was not basing her decisions on what was politically expedient. "If in fact, voters want to say this is the wrong thing to do and end my political future, so be it," she said. Smith also reminded them the budget has yet to go through the Senate or negotiations on a compromise. "No taxes have been raised," she said. "All we're doing is moving this to the next inning." Both the budget proposed by Gov. John Lynch and the committee's proposed budgets would lay off several hundred people. The House adjusted Lynch's plan to save 20 corrections officers' jobs that would have been lost when a prison in Laconia is closed. About 40 people who work at a school for children with behavioral problems got a reprieve as the House committee rejected Lynch's plan to close the facility on July 1. Lawmakers put another year's funding in the budget. Read more. If link has expired, check the website of the article's original news source. |
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