My Turn: Real economic plan would start with minimum wage
The Republican gubernatorial candidates seem locked in a battle to win the award for dumbest economic plan of the year.
Walt Havenstein would reduce taxes on the Haves by cutting business taxes, but fails to explain how one replaces that estimated $49 million in lost revenue. But he assures us he wouldn’t have to cut programs and somehow his “cut taxes” scheme will magically produce 25,000 new jobs.
Andrew Hemingway would add to the burden of the Have Nots with his scheme to tax “employers” 2 percent while offering the Haves a cut in interest and dividend taxes.
When you examine Hemingway’s “employer” tax, you discover that it is really an “employment” levy adding a 2 percent flat tax to wages and salaries while cutting the interest/dividends levies to that same 2 percent. (Hey, isn’t that an income tax?)
No matter who signs the check to the tax collector, a 2 percent levy on wages and salaries is a burden to the workers; an employer-paid tax on wages is another deterrent to hiring or offering raises and an employee-paid levy is . . . an income tax!
If the Republicans were serious about job creation, they’d get serious about boosting the bottom feeders and stop worrying so much about the boys in the boardrooms.
Instead, they eliminated the state’s minimum wage, dropping the state wage floor to the federal level, a level at which no family can survive.
A serious proposal to boost the New Hampshire economy would start with a state minimum wage above 10 dollars an hour. That would put more money in the hands of the poorest, and they would spend it.
That’s what poor people do when they get money because they need things. And that spending drives the economy, spurs hiring.
Henry Ford understood that; how come Hemingway and Havenstein can’t grasp it?
Maggie Hassan understands it; I’ll stick with her.
(John R. White of Wolfeboro is a Democratic candidate for the state Senate in District 3.)