NH education vouchers versus US tariff rebates
Usually, legislation enacted in Washington, DC, eventually makes its way down to cities and towns across the U.S. In at least one reverse case, it appears that New Hampshire is leading the way. For years, NH residents and tourists have paid a “Meals and Rooms” tax. The rate is currently set at 8.5% and applies to all prepared “meals” costing 36 cents or more.
The taxes are collected by the businesses and then passed along to State House coffers. If you ever wondered how NH residents of means can get a “tax cut” without a state income tax, the strategy has become more clear recently. In NH, some residents can receive a taxpayer-funded education voucher, whether they need the money or not, while many more NH residents (e.g., workers, seniors, etc.) pay the prepared food tax.
Recently, courts determined that taxes (A.K.A., tariffs), already paid by consumers in many cases, were improperly collected and needed to be refunded. Similar to NH, the “vouchers” (i.e., tariff refunds) will likely go to companies that may not have ultimately paid the tariffs and are still turning a profit. Meanwhile, individual tax/tariff paying consumers will likely see little to no relief as prices continue to rise. As for me, an eight-cent “donut tax” turned out to be quite an educational experience after a brief search, since a box of six or more would likely not have been taxed. Once again, the Party of Business appears to be giving many Americans the business.