Why Did the Democrats Organize a Tax Summit?

Democratic Representative Susan Almy- who chairs the Ways and Means Committee- understands that taxation holds a special place in the state’s collective consciousness.

TAPE: you are not supposed to emit the word ‘tax’ aloud without washing your mouth out with soap.

Ten years of time on Ways and Means has informed Almy’s views on the matter.

But despite the third rail nature of tax talk, she decided over the summer to do what lots of committees do.... invite experts- in this case- economists, businesses and community leaders to brief members on key issues facing the committee.

TAPE: what we are trying to find out is whether we are badly affecting some businesses versus others, making it harder for people to get jobs, making it harder for businesses to grow.

Almy figured with the state facing severe deficits and the nation is slogging through a Recession, it was a good time to look at how the state raises money.

When news of the two-day session broke, predictably, conservative critics blasted Almy- a solid income-tax supporter.

The Union Leader wrote an editorial entitled, “Susan’s Secret, Pitching an Income Tax,” which went on to say that Almy, Speaker Terie Norelli and other top Dems hope to convince enough legislators to back the concept.

The state Republican Party declared “Democrats are obviously planning to wage a dishonest campaign...to push for an income-tax.”

What’s curious is that top House Democrats had anticipated catching at least some heat.

Before anything got going, Almy went to Speaker Norelli for permission.

Norelli, who has also supported an income tax, weighed the pros and cons and gave her consent.

She saw no reason to back away from a politically charged- but critical- topic.

What the Speaker says she doesn’t understand is how absurd the hysteria around the event has gotten.

TAPE: I find it incredulous there are people in the public saying to legislators, please don’t educate yourself about the decisions you have to make.

In part, Norelli’s frustrated by the fact that many critics have overlooked the bipartisan nature of the committee’s agenda....choosing instead to simply tar all Democrats.

In reality, Almy, with the help of two Republicans committee members and another Democrat put the session together.

That includes the ranking Republican Norm Major.

TAPE: if it was just designed in order to get a broad-based tax then I wouldn’t want any part of it.

Democrats may have also believed there would be political cover because Governor Lynch has made himself perfectly clear.

TAPE: I will veto a sales or an income tax. So it’s not going to happen. They know that.

But whatever assurances the governor or lawmakers offer, whatever the details are surrounding the lead up to the talks, critics remain deeply skeptical.

TAPE: this is a job killing, small business killing event, that when the average person finds out that on the discussion table, whether overtly or covertly, is the notion of a statewide income tax, there will be a revolution.

Corey Lewandowski heads the state Americans for Prosperity chapter.

For people like Lewandowski, part of the issue is that the committee talks only focus on revenues.

Lewandowski believes lawmakers must figure out how much money they need before they can properly analyze the how much revenue is needed.

Earlier this month a blogger on Red Hampshire wrote that Terri Norelli and Susan Almy will stop at nothing to see that an incomes tax passes.

He goes on to say that it’s time for a change in leadership.

Just like Almy knows ‘tax’ can be a bad word, she knows that she and other Democrats have taken their share of hits as a result of talks that likely won’t lead to much change.

But she says in the long run, it may be worth it.

TAPE: I am hoping that if people are willing to talk and listen to each other about taxes more often maybe we will be able to smooth the rough edges off the system we’ve got.

The Ways and Means session begins today at the Capitol.