Maggie’s folly: Her anti-business double-down
New Hampshire Union Leader
Editorial
July 21, 2015
Gov. Maggie Hassan on Monday vetoed House Bill 550, which clarified that businesses do not have to pay the state business profits tax when they raise cash in an Initial Public Offering (IPO). One of her stated excuses for the veto was that “I am disturbed by the process that brought this bill to my desk. It was passed at the last moment, with no public hearing before the vote. That defective process has understandably raised concerns among members of the Legislature and the public.”
Oh, please.
When she was Senate Majority Leader, Hassan oversaw the “last moment” inclusion of an entirely new tax on Limited Liability Companies (LLCs) into the state budget. Senate Democrats inserted the tax into the 2009 state budget at 1 a.m., with no public hearing. The real reason for her veto was to use this tax change as a bargaining chip during upcoming budget negotiations. Those negotiations were made necessary when she vetoed the state budget primarily because it contained business tax cuts.
So once again she signals to the country that New Hampshire is a place where businesses are expected to submit quietly to some of the nation’s highest corporate tax rates — and like it.
This tax clarification was requested by Newington-based Planet Fitness, which is preparing for an IPO. Company officials said they were likely to move the business out of state rather than pay a windfall tax on the company’s increased valuation after going public.
Even though Hassan acknowledged Monday that the law Planet Fitness wants changed “can hinder capital investment in New Hampshire companies,” she still vetoed the bill. She is willing to let this company (and its taxable profits) move out of state so she can gain political leverage over Republicans.
Incredible. Why would any business relocate to New Hampshire as long as she is governor?