• Candidate expounds on vision for N.H.

  • PORTSMOUTH — Part of GOP gubernatorial candidate Andrew Hemingway's tax reform plan for businesses calls for taxing nonprofits, like Phillips Exeter Academy.
    • email print
    "Phillips Exeter Academy is a good example and this isn't just because of Gov. Hassan," Hemingway said during an editorial board interview Thursday with the Portsmouth Herald.
    Gov. Hassan's husband, Thomas Hassan, is the principal of Phillips Exeter Academy.
    Hemingway said the academy earns roughly $200 million a year in revenues and has a "billion dollar endowment," but "they pay zero taxes to the state of New Hampshire."
    By taxing the academy, Hemingway contends, you're really raising the tuition "on people who spend $50,000 for their student to go to a private boarding school."
    "My question is would we rather continue the old model of taxing the working poor in the state or do we like a proposal that's innovative that allows for the taxing of wealthy people in other states," he said.
    The outspoken Bristol entrepreneur, who called his GOP opponent Walt Havenstein's tax plan "boring," said his plan calls for eliminating the business profits tax, the business enterprise tax and the Medicaid Enhancement tax, while lowering the state's "interest and dividends tax from 5.5 to 2 percent to incentivize capital investment."
    In their place, he said, he would create a 2 percent "business flat tax" that would also apply to nonprofits and be "revenue neutral."
    His tax on nonprofits would not apply to any religious institution and would exempt nonprofits with less than $200,000 in gross revenues.
    "Nonprofits and government agencies are protected, they don't pay any tax at all and they have an unfair advantage with labor," Hemingway said.
    The tax burden in New Hampshire is on the private sector, which is mostly small businesses, he said.
    Asked about his decision to sign a pledge against establishing a sales or income tax, Hemingway said, "Because it lines up with my ideology, my ideas, so it's pretty simple."
    He opposes Gov. Hassan's efforts to establish one high-end resort casino and instead calls for expanding the state's existing charity gaming system.
    He questioned Hassan's continued support for "one huge casino."
    "At this point, she's suffering from tunnel vision. ... She's really suffering from just looking at one thing," Hemingway said.
    He said every time Hassan's casino plan fails — and its failed twice — more lobbyists end up getting hired.
    "You guys should see Concord with the lobbyists now, it's insane and they're almost all being paid by the gaming lobby," Hemingway said.
    In terms of social issues, Hemingway said he supports the repeal of the death penalty. He said he is also pro-life, but acknowledges it's not an issue that the governor has much, if any, control over.
    "When I say I'm pro-life, I'm not saying I'm an activist trying to end all abortions," he said in response to a question.
    But he did say he would end the buffer bill, stop government funding to Planned Parenthood and look for ways to "increase regulations on abortion clinics."
    "I'm pro-life, I believe that life is sacred," Hemingway said.
Reader Reaction