Posted on 09/24/2002 7:57:27 AM PDT by BlackRazor
Fernald income tax plan is flawed says Benson
By TOM FAHEY
State House Bureau Chief
CONCORD Republican candidate for governor Craig Benson argued yesterday that state Sen. Mark Fernalds income tax plan will cost taxpayers more, bring spiraling tax rates and cost families income in the long run.
Fernald, a Democrat from Sharon, is running on a platform that calls for an income tax, which he says is the fairest way to raise the same amount of money for education. He proposes a 4 percent tax to raise money that would cut state and local property taxes in half and allow the repeal of the Business Enterprise Tax.
Benson said neither Fernalds math nor his assumptions work out, describing them as Marks myths.
Studies by the conservative Cato Institute and the Lincoln Center for Policy Studies, he said, show states with an income tax increase spending faster, experience higher deficits, see tax rates climb and pay an overall higher tax burden.
The best solution is to control spending We need to return fiscal discipline to state government, Benson said.
Fernald said last week that Benson is ignoring a growing fiscal crisis in the state. Even if Benson froze education aid at this years levels and limited spending increases to less than 2 percent, he said, the state would see a $167 million deficit over the next two years.
Fernald, whom Benson outspent by a 30-to-1 margin in the primary election phase, released a poll yesterday that showed him even with Benson, at 40 percent each, with 20 percent of voters undecided.
The poll by Bannon Communications was conducted among 500 registered voters between Sept. 18 and 22. Its margin of error was 4.5 percent.
Fernald is a two-term state senator and attorney in private practice. Benson is co-founder of Cabletron Systems. He spent nearly $10 million in his primary campaign to capture 36.6 percent of the GOP vote.
At a press conference yesterday, Benson said the Fernald tax plan has already been proven flawed in studies of other states that passed income tax plans.
He predicted the income tax rate and spending will rise. He pointed to New Hampshire income tax proposals that have called for increasing rates over the years: from 3 percent in 1999 to 4 percent now.
How can he said that the rate wont increase when he keeps jacking it up before he can even get in place, Benson asked.
Fernald spokesman Steve Marchand said the Fernald plan would be revenue neutral. One advantage is that the state would collect between $80 million and $120 million from out-of-state workers who now pay the income tax at home, he said.
We have one of the lowest tax burdens as a state in the country and its our aim to keep it just that way, but theres a lot better ways to raise that same amount of money, he said.
He admitted some people will pay more in taxes under an income tax.
Our general philosophy is if the Craig Bensons of the world pay their fair share, the vast majority of people in New Hampshire will get a tax cut, he said. Were not asking people to pay a burden higher than what were paying now as a state.
This one might take the Wishful Thinking award for the day! The poll cited above shows Fernald tied with Benson, 40-40. The independent ARG poll, released last Friday, showed Benson with a 55-30 lead.
Coop: Have you ever heard of Bannon Communications?
If you want on or off my poll ping list, let me know!
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