Mary Hakken-Phillips

Mr. Chair & Members of the Committee: I oppose HB417 relative to repealing the communications service tax because the ~$30 Million dollars of revenue brought in to our state each year is vital to the funding sources for state programs and services. I was a member of your Committee two terms ago, when then Chair Norm Major and Deputy Chair Patrick Abrami agreed whole-heartedly that one of the advantages of NH’s tax revenue system was that there was a patchwork of smaller taxes that made up our funding sources, and that each was critical to make sure our state functioned properly. This patchwork of funding sources was intentionally established, so that our state didn’t have to rely on a larger revenue funding mechanisms, like a sales or income tax. The Communications Services Tax (CST) brings in about $30M of revenue each year. So, I would ask the sponsors and advocates of the bill which $30M worth of programs and services currently provided by our state would they cut as a result of elimination of the CST. I'm sure each member of the Committee could think of existing state-run programs that they would like to expand, not eliminate all together (i.e. EFAs, F&R Meals at Schools, etc.).. This bill is hardly a fiscally responsible idea in a year that NH is already facing tremendous headwinds in its budget deliberations - where many are predicting painful cuts on the horizon. If Chair Major and Deputy Chair Abrami found usefulness in keeping the CST two cycles ago when the revenue picture was more robust and the economic environment was much stronger, then the Ways & Means Committee's elimination of the CST is the absolute wrong decision in this cycle when the revenue picture is dire and the economic environment is volatile. For these reasons, I encourage the Committee to vote ITL of HB417. Thank you. Rep. Mary Hakken-Phillips