When Bruce Berke announced the National Federation of Independent Business (NFIB) was endorsing Republican Kelly Ayotte in the governor’s race, he made it perfectly clear what the top topic is on the minds of his members.
Taxes.
Standing amid construction materials and shelves of chemicals with Ayotte and the owners of Associated Concrete Coatings in Manchester, Berke summed up how the small businesses represented by the NFIB view the race.
“We have a campaign right now that is talking about taxes, and the business community likes predictability when it comes to taxation,” he told Ayotte. “You have been solid, and we really appreciate it. In fact, more than solid — you’ve been concrete. But your opponent has been somewhat porous with her approach [to taxes],” a reference to the business hosting the endorsement.
Berke was representing the NFIB New Hampshire PAC, which is comprised exclusively of NFIB members in New Hampshire.
Ayotte, as she’s done frequently during her race against former Manchester Mayor Joyce Craig, seized on the tax issue.
“When Joyce Craig got in this race, I’ll never forget, she was on [the WMUR news program] Close Up, and Adam Sexton asked her whether she would increase business taxes, and she couldn’t answer the question,” Ayotte said, “Eventually she clarified.
“You’ll never have to worry about clarifying with me. I stand very clearly that we will not be increasing business taxes in the state of New Hampshire.”
A reporter noted Ayotte has been saying Craig’s plan to bring back the income tax on interest and dividends would impact small businesses and asked her to explain how.
“First of all, let’s just be clear; Joyce Craig wants to reinstate a tax the legislature has already made the decision, along with the governor, to phase out, so she wants to bring back $160 million in taxes,” Ayotte said. “That’s a big tax increase on people in New Hampshire.
Ayotte said data from the DRA [Department of Revenue Administration] shows “there are small businesses impacted by the income tax on interest and dividends. But also, in particular, retirees, and people who are saving for retirement.
“If you’ve got interest or dividend income as a retiree, this is an income tax for you, and she wants to reinstate it,” Ayotte added. “So if you’re a small business, hold on to your wallet. That’s why we can’t have Joyce Craig in that Corner Office.”
According to 2021 DRA data obtained by NHJournal, just over one thousand of the tax filings that included interest or dividend revenue were from partnerships — many of them small businesses — that paid $1.6 million in I&D taxes.
Craig has declined to respond to multiple requests for comment about her tax policy.
Ayotte was asked if it was a coincidence that she came to Manchester — where Craig was once mayor and whose record she has frequently criticized — to receive her endorsement. “It’s just centrally located,” she insisted.
When asked about her campaign ads that show Manchester in a negative light, Ayotte insisted the issue isn’t the city, but it’s previous leadership.
“I’m very proud to work with Mayor Jay Ruais, who’s working very hard to lift up this city. And I told him directly, when I’m governor of New Hampshire, we’re going to work together to make sure that Manchester is strong,
“Unfortunately, Joyce Craig failed Manchester,” Ayotte added. “It’s not the other way around.”
Tom Hall, president of Associated Concrete Coatings, was asked why he’s supporting Ayotte. “Taxes and regulations,” he said.
“I believe that a governor like Kelly will leave us alone. With Kelly, there’s a chance that there will be some regulations that are on the books that might be able to be pared back, as opposed to Joyce Craig who, I believe, would look at the regulations on the books and try to add.”
Berke told NHJournal many of his members feel the same way about the governor’s race.
“They love Kelly, really,” Berke said. “I wouldn’t say I see a lot of activism right now, but I certainly don’t see them moving in Craig’s direction.”
