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House GOP plans will gut state's revenues for years

by: Mike Emm

Mon Apr 04, 2011 at 07:45:52 AM EDT
(As today's visitor might say, This is a big freaking deal. - promoted by elwood)

In addition to the tax cuts the GOP-controlled has passed this term, they have secretly inserted a revenue trap into the budget that will take years to remove. The House is cutting the budget of the DRA (the agency that collects taxes and other revenues on our behalf) by 30%. It is reducing DRA's staff by 43%, and in the critical audit division that targets the rich and corporations it reduces the staff by 50%. The House did this knowing that every dollar spent in auditing brings in at least 15 dollars in additional taxes. Taxes that are legitimately owed based on current law, not new taxes.  
Mike Emm :: House GOP plans will gut state's revenues for years
This little budget trick will have a long term impact on state revenues even when these radicals are voted out in 2012. It has taken years to do the recruiting and training needed to put together an effective and efficient tax authority. This budget throws away all that work by firing close to half the staff.  Once DRA's staff is gone, it will take years to rebuild the organization. The only beneficiaries of this wanton act of destruction will be the largest tax payers in the state who know the green light has just been turned on to escalate their tax avoidance schemes.

The people of New Hampshire have the right to expect that, no matter what the political philosophy of the legislature, it will at least act as good stewards of the state's interests. This under-cover destruction of the state's ability to raise revenue is utterly against our interests and is a scandal. It's hard to overstate the recklessness of this move. I wonder if any of the media will bother reporting on it.  
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House GOP plans will gut state's revenues for years | 8 comments
Well, WE knew (4.00 / 1)
that electing people who hate government is not really to best way to run a state.  But then, we think.
This is outrageous. (0.00 / 0)
And it needs to be covered by all the media outlets.

Why is the NHGOP encouraging tax cheats?

birch paper; on Twitter @deanbarker

When you couple the destruction of DRA's audit division... (0.00 / 0)

... with the passage of HB557,  which changes the rules for what constitutes 'reasonable compensation' to owners of LLCs and partnerships to be whatever the owners wish to declare, and then puts the burden of proof for whether the amount claimed is fair or not on the DRA, it is pretty clear the intent is to kill government by cutting off its funds.

HB557 lets a business avoid taxes by declaring all of it's profits to be 'owner's salaries' whether or not the owners are actually paid the money. It would be like you being able yo declare whatever amount you wanted as deductions on your 1040 and the government simply having to take what you say as true.

Should HB557 pass the Senate with a veto-proof majority, the state will will essentially be telling some of the richest people and businesses in the state that taxes for them are now optional.  

[ Parent ]
Why is the NHGOP encouraging tax cheats? (4.00 / 2)
Uhhhhh    BECAUSE THEY ARE THE TAX CHEATS!
IS THIS A TRICK QUESTION????
What does the Governor think? (0.00 / 0)
Has anyone asked him?

Will there be a veto?

Thanks Mike (0.00 / 0)
Thanks for putting this in front of us.

I was unaware of this time bomb.

(there are so many)

What makes this so maddening... (4.00 / 1)

... is it appears that the former DRA commissioner, Phil Blatsos, played a major role in devising the plan to destroy DRA's effectiveness. According to GOP House leadership, he worked closely with House Finance Chair Ken Weyler and House Republican budget team to develop this scheme.

If anyone knows how important DRA's staff is, and how easy it is to destroy the organization by firing the staff, it's Blatsos. When he was commissioner, he pushed hard to increase the size of DRA's audit team because he knew how critical it was in helping the state collect revenues that were rightfully owed to us.

To see him actively work to destroy the organization he helped build in the name of so-called 'budget austerity' is an eye opener, at least to me.  

[ Parent ]
Can we hear from Blatsos? (0.00 / 0)
Does someone know him?

whp
[ Parent ]
House GOP plans will gut state's revenues for years | 8 comments

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