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Gas tax hike a good investment

By Staff | May 9, 2013

New Hampshire’s tax advantage was up for debate again this week at the Statehouse. This time it wasn’t one of the usual suspects. Instead of wrangling over sales, income or business taxes, lawmakers and special interests clashed over the state’s gas tax.

Several people testified at a Senate Ways and Means Committee hearing Tuesday that having the lowest gas tax in New England gives the Granite State a competitive edge. Astute observers argued such a perspective is penny wise and pound foolish.

Legislation that cleared the House last month would raise the gas tax 12 cents over the next three years for non-diesel fuel and 12 cents over six years for diesel fuel. The increase would raise more than $800 million over the next 10 years to improve the state’s ailing transportation infrastructure.

Opponents argued Tuesday the tax hike would discourage business, increase costs of food and other items, and chase fuel providers across the border to neighboring states with lower tax rates.

It’s more likely the costs to New Hampshire will be even greater without the tax increase.

About one-third of New Hampshire’s 4,500 miles of roads are in poor condition. Highway expansion projects have stalled due to under-funding, and nearly 500 of the state’s bridges are on the so-called “red list,” meaning they are considered structurally deficient.

The deteriorating infrastructure costs drivers now by forcing vehicle repairs. It stands to cost the state far more in terms of economic growth, deterring businesses from expanding or re-locating to New Hampshire.

Opponents of the tax increase have proposed other alternatives to fund transportation projects. Sen. Chuck Morse, who declared the gas tax proposal “dead on arrival” earlier in the session, prefers to fund repairs through revenues from a new casino, now under consideration in the House. During Tuesday’s Senate hearing, Robert Berti, a former Rumney selectman and owner of a forestry products business, proposed restoring a registration surcharge for cars and trucks, which would average $25 each.

Neither of these proposals equals the amount of funding promised by the gas tax increase. Nor would the alternatives provide the same long-term stability.

Our roads and bridges are not a luxury. They are vital to the state’s long-term economic vitality. Doubters need only look to the Seacoast where the failure to address problems with the lift bridges that span the Piscataqua River is causing economic hardship for many businesses.

Tax-hike sponsor Rep. David Campbell, D-Nashua, is right. We are in the midst of an infrastructure crisis. We can’t let it become an economic catastrophe.

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