Legislature Passes Unsustainable Budget
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The NH Legislature recently passed a budget bill for Fiscal Years 2020-21. In addition to spending the surplus generated by the previous Legislature, it contains two landmines.
The most dangerous is a $81 million unfunded “plug” to continue funding education. Since there is no plan to fund this, new taxes will be required, most likely an income tax or a capital gains tax. Bills to do so are “on the table” to be brought forth when wished-for new state tax receipts do not show up in 2020. These new taxes will be set at a low rate to cover the education shortfall, ready to be expanded in the future, as always happens. Note that our current Federal income tax, set in 1913, was originally 1%, and has grown from there.