News and Views

by Andrew Kone

Jeanne Shaheen perfectly encapsulates the reason why Democrats should never be entrusted with stewardship of our economy: everything they know is wrong.

Shaheen proposes raising taxes only on people who make over $250,000, who she falsely assumes are “rich”. Many people with high annual incomes are small business owners, not oil barons. “Income” is not a synonym for wealth. On the other hand, people without any annual income may be extremely wealthy, living on trust funds and tax-free investments. The words “limousine liberal” come to mind.

President Bush’s tax cuts favored the middle class, not “the rich” from whom tax receipts have actually risen since 2001. The massive tax increase that Shaheen now proposes would fall upon middle income taxpayers, and with devastating effect. According to one recent study, the average tax increase for a New Hampshire resident would be over $2200.00 by 2012, leading to reduced incomes and a loss of jobs.

Our present deficit is the result not of low taxes, but of irresponsible Federal spending. While President Bush has failed to control these expenditures, is there any doubt that a Democrat President, enabled by a Democrat Congress, would gleefully pursue vastly higher taxes and more extravagant spending?

by Bill Martel

The U.S. economy is hovering near a recession, and according to public opinion polls, the economy – not the Iraq War — is the single greatest concern of Americans.

The stock market is down 10 percent. Oil is at $108 per barrel. Foreclosures in New Hampshire and nationally are at historic levels. Food prices continue to increase.

Facing recession, the classic response by policymakers is simple: cut taxes in order to stimulate our economy.

Why cut taxes? Two-thirds of the American economy is based on consumer spending. Putting money in the hands of consumers is and remains the fastest way to promote economic growth.

When markets are down – and energy prices, food prices and home foreclosures are dramatically higher – there is no worse time for politicians to increase taxes and spending.

Yet, strangely, that is exactly what the U.S. House of Representatives voted to do last week – to raise taxes by $683 billion. And recall the steep increases in N.H. government spending.

By voting to repeal the 2001 and 2003 tax cuts, the Congressional vote will have a dramatic effect on U.S. and New Hampshire households. While estimates vary, most households and small businesses in N.H. will pay several thousand dollars more in taxes.

Meanwhile, New Hampshire’s state budget is running a deficit of at least $50 million – some estimate it might $100 million or higher.

I mention these uncomfortable facts because the keys to long-term economic growth and prosperity are lower government spending, lower taxes, and greater consumer spending. For now, both Washington and Concord are moving in the opposite direction.

If we continue to move toward higher government spending and higher taxes, the U.S. and N.H. economies will find themselves more like Europe. Those economies suffer from higher taxes and higher government spending, lower growth, and higher unemployment.

The question for us all: is this our vision of the 21st century U.S. and NH economies?