, Derry, New Hampshire


May 2, 2013

Editorial: Don’t whack struggling citizens with tax hikes

New Hampshire is doing better than many states in this anemic recovery from recession. But few would claim the state’s economy is in robust health.

That makes proposals from Gov. Maggie Hassan and the Democratic-controlled House to increase many consumption taxes particularly troubling. People in the Granite State still are struggling to make ends meet. State government should not make those struggles more difficult.

A superficial look at the numbers makes New Hampshire’s economy seem strong. The unemployment rate for March was just 5.7 percent, down 0.1 percentage points from 5.8 in February and well below the national average of 7.6 percent.

But while the national rate has dropped year-to-year from 8.2 percent in March 2012, New Hampshire’s rate is increasing. A year ago, the unemployment rate was lower — 5.3 percent. This is not a welcome trend.

Another unemployment statistic paints a less rosy picture. The “U-6” unemployment rate includes not only the unemployed but also those working less than they would like — such as those who have taken part-time jobs while looking for full-time positions in their chosen fields. The U-6 rate for New Hampshire is 11.2 percent.

That means money is tight for a significant portion of New Hampshire’s population. And there are ever greater demands on that limited income. Food and energy costs are rising; health care expenses are increasing faster still. Gasoline prices have stabilized at what appears to be a “new normal” around $3.50 per gallon — a level that would have been deemed outrageous just a few years ago.

And ask residents of Derry what the impact of local property taxes is on their income. The town’s property tax take is among the highest in the state.

Now comes Gov. Hassan with her plan to balance the state budget through tax hikes. The Democratic-controlled House has been supportive; the Republican Senate, less so.

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