Governor Shaheen unveils new tax plan

The associated press quotes unnamed sources who say the governor’s plan is to cut statewide property taxes from six-fifty per thousand to five dollars – and combine that with a two-and-a-half percent sales tax. The sales tax would not apply to essential items, such as food, clothing, and medicine.
That combination reflects her blue ribbon committee’s report that a combination of taxes would do less economic harm than any single tax. Still, no tax is without side effects. Doug hall, head of the new hampshire center for public policy studies, says he estimates that because new hampshire currently doesn’t have a sales tax – its retail sales per capita are about 40-percent higher than the national average.

Tape hall: there is an unknown here… (about :24)

As for taxpayers, hall predicts that many people wouldn’t notice a difference in their wallet – at least at the state’s current rate of spending.

Tape hall: renters would notice.

Hall and others believe the state can’t maintain its current rate of spending -- it either has to cut aid for public schools – a measure that could run afoul of the state supreme court – or raise more money. Still, some republican legislative leaders hold out hope that the state’s economy can “grow” its way out of the problem, eliminating the need for more taxes. The governor is set to formally announce her plan wednesday afternoon. For new hampshire public radio, i’m doug macpherson.