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New Hampshire Gay Marriage Bill: Taxing Issue?

Gay Marriage Could Bolster State’s Population

 

The New Hampshire legislature approved a gay marriage bill and sent it to Governor Lynch for his signature last week. The governor has just days before he must legally make a decision. He may sign the bill into law, veto it and risk and override, or ignore it and it will become law.

A little-known fact about New Hampshire, whose state motto is, “Live Free Or Die”: there is essentially no state income or sales tax. There is an 8% Meals and Rentals Tax, paid for meals and lodging in restaurants and hotels. There is also a property tax and a dividends and interest tax.

The governor is on record as being personally opposed to gay marriage, although he has said is is open to it and is reportedly making his way about the state taking to voters about the bill. The governor enjoys one of the highest approval ratings of all governors, last being 70%, which is very high. 15% disapprove, and 15% are neutral. He is up for reelection in 2010, and Andrew Smith, director of the University of New Hampshire Survey Center, said,

“He’s not in a position where it matters to him electorally.” […] “He’s got his own independent political machine that’s outside the Democratic party. If he signs it, the Republicans will gripe, but they have never been able to field a credible candidate against him. If he vetoes it, the Democrats are still going to vote for him (in 2010).”

One factor that may swing the governor’s decision is the tax issue. Were New Hampshire to offer marriage equality, and given its current tax structure, it would stem any movement of gays out of the state to nearby states that support gay marriage (currently Massachusetts, Connecticut, Vermont, and shortly, Maine) and would, in fact, encourage gay couples to move into the state for the very same reason. Were it to be the only state in the area to continue the ban on gay marriage, it could find its economy troubled.

Groups from both sides of the argument have become extremely active the past week, but the governor is said to not be looking at the number of calls and emails his office has received.

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