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Friday, June 5, 2009

Third Way=Higher Taxes

New Hampshire Business Review reports that state budget writers are busy trying to find more ways to get their hands on your money:
Taxing mortgage refinancings and limited liability company distributions are two ideas being considered as “third way” taxes that aren’t specifically referred to in the House and Senate versions of the budget but may help lawmakers reach a compromise on the spending package, Rep. Marjorie Smith, chair of the New Hampshire House Finance Committee confirmed Thursday.

Details about either tax are scarce, though some observers are talking about a 1 percent tax on refinanced mortgages, coupled with reduction in the real estate transfer tax, and a 5 percent tax on LLC distribution. The amount raised is anybody’s guess, but combined it could be as much as $150 million.

Imagine if the Governor and House and Senate Finance Committees took this much time and effort to cut state spending instead of concentrating on "revenues".

There are two ways to balance the budget: cut spending, borrow, or raise taxes. This latest effort at creative taxation is truly the "third way".

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