Politics of New Hampshire
Encyclopedia
New Hampshire has had an unusual tax base over the years. Unlike most states, there is no sales tax. Like most states, it has been forced by the courts to equalize taxes for uniform support of schools in all areas of the state.
on rentals (vehicles and rooms) and meals, and a 5% income tax
on dividends and interest; moreover, the state's 0.75% Business Enterprise Tax is essentially an income tax on sole proprietors. However, candidates for legislature and Governor are routinely asked to take "The Pledge
" against broad-based taxes.
The property tax is the source of nearly all municipal revenue. It is "broad-based" (affecting even renters, indirectly) but does not attract the same controversy because municipal expenditures are voted locally, typically by Town Meeting
, in which every voter can participate.
In 2002, in response to court-ordered statewide equalization of education funding (see the Claremont Decision
), New Hampshire instituted a statewide property tax
. The tax is lower than the amount already assessed by municipalities, it is collected by municipalities, and is basically returned to them, though legislative adjustments create "donor towns" and "recipient towns." Each new legislature has considered changes to the distribution formula.
Taxes that are not "broad-based" (that is, that residents could avoid paying) have not aroused comparable controversy. For example, the meals and rentals tax disproportionately impacts tourists and visitors who do not vote. Recent legislatures have covered increased spending with increases in sin taxes, tolls, and filing fees. Some feel it would be simpler and fairer to enact a broad-based tax; in 2008, various Town Meetings considered citizen petitions against "The Pledge." In particular, the property tax is seen as unfairly impacting the poor and especially retirees. Advocates of a state broad-based tax say it would permit higher state payments to municipalities, enabling them to lower property taxes. The opposing argument is that municipalities set their tax levels to find a balance between local anti-tax and pro-services forces; a new state tax would not change this balance but would eventually lead to more state spending.
tendencies. New Hampshire perennially provides popular resistance to proposed seat-belt and motorcycle-helmet laws. Automobile insurance is optional under normal circumstances.
The state motto of "Live Free or Die
" is another political touchstone. In 2006, when welcome signs at the border began to display the marketing slogan, "You're Going to Love It Here," a firestorm erupted and Governor John Lynch acceded to a privately-financed effort to erect new signs bearing the state motto. In 1997, a comparable firestorm had greeted a new issue of car license plates on which the motto was printed rather than embossed; the design was promptly changed to increase the size of the motto. (However, the U.S. Supreme Court had ruled in 1977 that those who object to the motto may tape over or cover up the words, either partially or completely.)
to select it by vote for a mass in-migration. Free Staters have been elected state representatives, but not to higher offices.
tendencies. For example, the REAL ID Act
was passed in response to the wave of aliens entering the U.S. illegally. It tightened standards for driver's licenses, mandated that states capture biometric data, and called for data sharing among states and internationally. Senator Judd Gregg
included an earmark
in the Act to compensate New Hampshire for being the first state to implement the Act. In 2007, however, New Hampshire overwhelmingly enacted a law calling the Act "contrary and repugnant to" the state and federal Bill of Rights
and prohibiting the state executive branch from implementing it.
and Salisbury, Massachusetts
, and not-nearly-contiguous Killington, Vermont
in 2004 and 2005, to petition to become part of New Hampshire. This reflected local discontent with restrictions on liberty or profitability, rather than any expectation that their own states plus the U.S. Congress would grant the necessary permission.
Taxation controversies
There is continual opposition to "broad-based" taxes. Their absence is not absolute; there is an 9% sales taxSales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
on rentals (vehicles and rooms) and meals, and a 5% income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
on dividends and interest; moreover, the state's 0.75% Business Enterprise Tax is essentially an income tax on sole proprietors. However, candidates for legislature and Governor are routinely asked to take "The Pledge
The Pledge (New Hampshire)
The Pledge is a term used in the U.S. state of New Hampshire for a promise by politicians not to support income taxes or sales taxes or other forms of what are known as "broad-based taxes."...
" against broad-based taxes.
The property tax is the source of nearly all municipal revenue. It is "broad-based" (affecting even renters, indirectly) but does not attract the same controversy because municipal expenditures are voted locally, typically by Town Meeting
Town meeting
A town meeting is a form of direct democratic rule, used primarily in portions of the United States since the 17th century, in which most or all the members of a community come together to legislate policy and budgets for local government....
, in which every voter can participate.
In 2002, in response to court-ordered statewide equalization of education funding (see the Claremont Decision
The Claremont Decision
Claremont School District v Governor of New Hampshire is an important legal case in New Hampshire. In the mid-1990s, the city of Claremont, New Hampshire started a process against the State of New Hampshire, challenging the constitutionality of the New Hampshire allocation of school funding.The...
), New Hampshire instituted a statewide property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
. The tax is lower than the amount already assessed by municipalities, it is collected by municipalities, and is basically returned to them, though legislative adjustments create "donor towns" and "recipient towns." Each new legislature has considered changes to the distribution formula.
Taxes that are not "broad-based" (that is, that residents could avoid paying) have not aroused comparable controversy. For example, the meals and rentals tax disproportionately impacts tourists and visitors who do not vote. Recent legislatures have covered increased spending with increases in sin taxes, tolls, and filing fees. Some feel it would be simpler and fairer to enact a broad-based tax; in 2008, various Town Meetings considered citizen petitions against "The Pledge." In particular, the property tax is seen as unfairly impacting the poor and especially retirees. Advocates of a state broad-based tax say it would permit higher state payments to municipalities, enabling them to lower property taxes. The opposing argument is that municipalities set their tax levels to find a balance between local anti-tax and pro-services forces; a new state tax would not change this balance but would eventually lead to more state spending.
Libertarian tendencies
New Hampshire has several libertarianLibertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...
tendencies. New Hampshire perennially provides popular resistance to proposed seat-belt and motorcycle-helmet laws. Automobile insurance is optional under normal circumstances.
The state motto of "Live Free or Die
Live Free or Die
"Live Free or Die" is the official motto of the U.S. state of New Hampshire, adopted by the state in 1945. It is possibly the best-known of all state mottos, partly because it speaks to an assertive independence historically found in American political philosophy and partly because of its contrast...
" is another political touchstone. In 2006, when welcome signs at the border began to display the marketing slogan, "You're Going to Love It Here," a firestorm erupted and Governor John Lynch acceded to a privately-financed effort to erect new signs bearing the state motto. In 1997, a comparable firestorm had greeted a new issue of car license plates on which the motto was printed rather than embossed; the design was promptly changed to increase the size of the motto. (However, the U.S. Supreme Court had ruled in 1977 that those who object to the motto may tape over or cover up the words, either partially or completely.)
The Free State Project
New Hampshire's libertarian reputation led the Free State ProjectFree State Project
The Free State Project is a political movement, founded in 2001, to recruit at least 20,000 libertarian-leaning people to move to New Hampshire in order to make the state a stronghold for libertarian ideas....
to select it by vote for a mass in-migration. Free Staters have been elected state representatives, but not to higher offices.
Right-libertarian tendencies
New Hampshire has right-libertarianRight-libertarianism
Right-libertarianism names several related libertarian political philosophies which support capitalism. The term is typically used to differentiate privatist based forms of libertarianism from Left-libertarianism; which generally supports forms of economic democracy and...
tendencies. For example, the REAL ID Act
REAL ID Act
The REAL ID Act of 2005, , was an Act of Congress that modified U.S. federal law pertaining to security, authentication, and issuance procedures standards for the state driver's licenses and identification cards, as well as various immigration issues pertaining to terrorism.The law set forth...
was passed in response to the wave of aliens entering the U.S. illegally. It tightened standards for driver's licenses, mandated that states capture biometric data, and called for data sharing among states and internationally. Senator Judd Gregg
Judd Gregg
Judd Alan Gregg is a former Governor of New Hampshire and former United States Senator from New Hampshire, who served as chairman of the Senate Budget Committee. He is a member of the Republican Party and was a businessman and attorney in Nashua before entering politics...
included an earmark
Earmark (politics)
In United States politics, an earmark is a legislative provision that directs approved funds to be spent on specific projects, or that directs specific exemptions from taxes or mandated fees...
in the Act to compensate New Hampshire for being the first state to implement the Act. In 2007, however, New Hampshire overwhelmingly enacted a law calling the Act "contrary and repugnant to" the state and federal Bill of Rights
Bill of rights
A bill of rights is a list of the most important rights of the citizens of a country. The purpose of these bills is to protect those rights against infringement. The term "bill of rights" originates from England, where it referred to the Bill of Rights 1689. Bills of rights may be entrenched or...
and prohibiting the state executive branch from implementing it.
Other effects
New Hampshire's right-libertarian reputation has also induced contiguous AmesburyAmesbury, Massachusetts
Amesbury is a city in Essex County, Massachusetts, United States. Though it officially became a city in 1996, its formal name remains "The Town of Amesbury." In 1890, 9798 people lived in Amesbury; in 1900, 9473; in 1910, 9894; in 1920, 10,036; and in 1940, 10,862. The population was 16,283 at...
and Salisbury, Massachusetts
Salisbury, Massachusetts
Salisbury is a town in Essex County, Massachusetts, United States. The population was 7,827 at the 2000 census. The community is a popular summer resort beach town situated on the Atlantic Ocean north of Boston on the New Hampshire border....
, and not-nearly-contiguous Killington, Vermont
Killington, Vermont
Killington is a town in Rutland County, Vermont, United States. The population was 811 at the 2010 census. Killington Ski Resort is located here....
in 2004 and 2005, to petition to become part of New Hampshire. This reflected local discontent with restrictions on liberty or profitability, rather than any expectation that their own states plus the U.S. Congress would grant the necessary permission.
See also
- Free State ProjectFree State ProjectThe Free State Project is a political movement, founded in 2001, to recruit at least 20,000 libertarian-leaning people to move to New Hampshire in order to make the state a stronghold for libertarian ideas....
- New Hampshire Liberty AllianceNew Hampshire Liberty AllianceThe New Hampshire Liberty Alliance website states that it is a nonpartisan coalition working to increase individual political freedom in New Hampshire...
- Political party strength in New HampshirePolitical party strength in New HampshireThe following table indicates the party of elected officials in the U.S. state of New Hampshire:*GovernorThe table also indicates the historical party composition in the:*State Senate*State House of Representatives*State delegation to the U.S. Senate...