Political professionals are perplexed by Democrat Joyce Craig’s decision to campaign for governor on a pledge to bring back New Hampshire’s income tax on interest and dividends. But a prominent Democratic strategist says that, not only is it good politics, but it’s a tax Granite Stater’s “want to pay.”
Lucas Meyer, a Craig ally and co-chair of the progressive advocacy group 603 Forward, told radio host Jack Heath Thursday that Craig was right to support reviving the tax on income from interest and dividends that’s being phased out at the end of the year. And voters are with Democrats on it, he argued.
“Jack, this is a tax people probably want to pay,” Meyer said.
“Woah, woah, woah — who wants to pay taxes?” Heath interrupted him with a laugh. “Tell me who wants to pay taxes?”
Meyer didn’t back down, insisting that Craig was being responsible to push for new taxes because the state will need the revenue for future spending.
Lucas Meyer
“Being governor, you have to manage the budget,” he said. “And Republicans are already starting to send out signal flags in the press that we’re looking at some dire economic projections based off our limited revenue sources in the state.”
Meyer also mentioned the cost of settling lawsuits in the state’s Youth Detention Center abuse cases, which will likely total hundreds of millions of dollars. Raising taxes is the right thing to do, he said.
“So, if we’re not going to raise taxes on multinational corporations, and the most people who are [earning] millions of dollars, what are we cutting?”
Democrats “aren’t asking these folks do anything more than they can handle,” Meyer added. “I think it’s patriotic.”
(Thursday’s entire interview between Heath and Meyer can be found here.)
Craig has made no secret of her support for reviving the tax which she says will collect $160 million dollars from Granite State taxpayers. Like Meyer, she says the tax is paid by the wealthy.
“Right now, we have Republicans like Kelly Ayotte who are fine with giving tax breaks to the most rich in our state, like herself,” Craig said of the tax.
But according to 2021 data from the New Hampshire Department of Revenue Administration, of the 71,259 tax returns reporting I&D income, 61 percent paid $500 or less in I&D tax. Given the five percent tax rate at the time, that means those Granite Staters had $10,000 or less in I&D revenue.
And the Josiah Bartlett Center for Public Policy reports that in 2022, 73.5 percent of those who made an I&D Tax filing paid less than $1,000.
“The state’s own data show that this tax is not paid only by the super rich, just as business taxes are not paid only by big companies. These taxes hit small business owners and middle-income families. Suggesting otherwise is misleading,” said Drew Cline, president of the Josiah Bartlet Center.
Meyer, described as a “top New Hampshire Democrat” by NHPR, is an outspoken Craig supporter. Asked if the former Manchester mayor shares his view that Granite Staters want to pay this “patriotic” tax, Craig’s campaign declined to respond.
Republicans, as the expression goes, pounced.
“Joyce Craig = More Taxes,” said the Republican Governors Association via social media. “It’s really that simple.”
“NH’s Interest and Dividends income tax will cease to exist on January 1, 2025. If Democrats are elected, they’re promising to resurrect it from the dead,” tweeted state Rep. Keith Ammon (R-New Boston)
Kelly Ayotte told NHJournal that Craig “couldn’t be more wrong” to continue to push for a return of this income tax.
“Granite Staters don’t want to pay higher taxes,” Ayotte said. “What world does she live in?”
“Joyce tried to raise taxes every year as mayor, and now she’s calling to raise taxes by $160 million. I won’t let that happen. As governor, I’ll keep our taxes low and work to make our state more affordable for families.”
As for Meyer’s claim that Granite Staters “want to pay” this income tax, Cline said there’s an easy way for Democrats to find out.
“If people want to pay taxes on their savings and dividends, then the state could make that an optional contribution. The left demands that it be forcibly confiscated precisely because they know no one wants to pay it.”
