Tuesday, May 26, 2009

Low Taxes is what is saving N.H. from deeper effects from the recession

In times of a recession you want low taxes, I want low taxes all the time. We here in Croydon and New Hampshire are lucky to have just that. This is also why we must keep fighting an income tax in New Hampshire, having an income tax does not guarantee a reduction in property taxes. An income tax will guarantee more government and a reduction in taxpayer power. Connecticut learned this lesson recently. Check with property owners in any of our neighboring states. Those who are fiscally conservative here in New Hampshire must fight to keep it that way before further damage is done by those in control in the house, senate and governorship here in NH.

The following piece appeared in the Union Leader.

Quote of the Day - “I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible.” Milton Friedman

Spelling and grammar errors as well as typos are left as an exercise for our readers.

Low taxes: NH's recession buster

Of all the New England states, guess where the recession is expected to be over first? If you guessed Rhode Island, go sit in the corner.

The answer, of course, is New Hampshire. Is anyone surprised?

The New England Economic Partnership's latest study, released last week, projected that Rhode Island would suffer the most in the current recession, New Hampshire the least. New Hampshire would not only come out of the recession sooner than the other states, but it would have the lowest unemployment throughout. Our peak unemployment is expected to hit 7.1 percent; Rhode Island's 10.9 percent. New Hampshire is expected to be the only New England state to maintain an unemployment rate lower than 8 percent during the recession.

The reason Massachusetts, Maine, Vermont, Connecticut and Rhode Island will all suffer worse job losses and a longer economic slump than New Hampshire is not because God likes us more (although He does). It's because New Hampshire taxes its people and businesses less and is a generally more business-friendly state.

As we weather the recession better than any other state in the region, it would be a terrible irony if we react to the down economy by instituting policies that would make the next one worse. To balance the state budget, lawmakers are considering awful ideas, such as creating an estate tax and a capital gains tax, both of which tend to depress economic growth by sending capital and jobs elsewhere.

Undoing our tax advantage is exactly the wrong reaction to the recession. If we find other ways to close the state budget deficit, we will have an even greater advantage when compared to our neighbors who heedlessly raised their taxes.

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