To The Daily Sun,
Please support repeal of the "hidden" New Hampshire income tax.
Even though we claim to have no personal income tax in New Hampshire, in reality we actually do. It is a 5 percent tax on interest and dividend income, and it may also apply to income from an S Corporation, a partnership, or an LLC.
The 5 percent rate is higher than the income tax rate of several states that have an admitted tax on personal incomes.
The worst effect of the I&D tax by far is on individuals who have worked hard and saved and invested for their future, after paying federal income taxes on whatever income they were able to generate and save.
This falls especially hard on seniors who are sufficiently fortunate to have investments in bonds and/or stocks. Even with the artificially low interest rates being paid on bank accounts, CDs, and bonds, to have to pay 5 percent of the meager interest income to the State of New Hampshire is outrageous, considering how we hold ourselves out as being a low-tax environment.
The I&D tax accounts for only about 4.06 percent of the total state unrestricted revenues, a very small portion of the total. So why is it still there? It is there to penalize people who work and strive and save and invest to support themselves rather than relying on big government to take care of them.
The I&D tax should be repealed and any revenue that mighty be "lost" to the state should be offset by cuts in spending in state government programs.
I am a co-sponsor (along with six other representatives) of House Bill 440, which would repeal the I&D tax, and a hearing on it will be held before the House Ways & Means Committee at 9 a.m. on Wednesday, Jan. 25, in Room 202, on the 2nd floor of the Legislative Office Building, located at 33 North State St. in Concord.
I urge you and any of your friends who also oppose the I&D tax to attend the hearing and voice your support for the bill. It is a very simple matter for you to speak your mind. Just show up, fill out a pink slip available at the entrance to the hearing room, indicate on it your name and town and that you want to speak in favor of, or in opposition to, the bill, and you will be called upon for brief comments by the committee chair.
If you do not show your strong support for the bill, the tax will likely remain in place.
State Rep. Norman Silber
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