A Cautionary Tale
Connecticut and Massachusetts both promised their taxes would be small and temporary. Decades later, residents are still paying — and leaving. New Hampshire Democrats want to bring the same failed experiment here.
Case Study #1
In 1991, Connecticut Governor Lowell Weicker promised a small, temporary income tax to close a budget gap. It was sold as a modest 1.5% rate that would be repealed once the crisis passed. That was 35 years ago.
Starting Rate (1991)
"Just a small, temporary tax to close the budget gap." That was the promise.
Current Rate
The rate has been raised repeatedly and now sits at 6.99% — a 366% increase from the original promise.
Cumulative Taxes Paid
Connecticut residents have paid an estimated $126 billion in income taxes since 1991. The "temporary" tax has become a permanent drain.
People Who Left
Over 325,000 people have left Connecticut on net since 1991. The state's population peaked the year the income tax was enacted.
Income tax enacted at 1.5%
Governor Weicker promises it is temporary and will close the budget deficit. A constitutional spending cap is included as a safeguard.
First rate increase
Just two years later, the "temporary" rate begins climbing. The pattern is set.
Rate reaches 5%
More than tripled from the original promise. The constitutional spending cap is routinely ignored.
Rate raised again to 6.5%
The recession is used as justification for yet another increase.
Rate hits 6.99%
A 366% increase from 1.5%. The constitutional spending cap — the safeguard that was supposed to prevent this — has never been meaningfully enforced.
35 years and counting
The "temporary" tax is still here. Connecticut's population has stagnated. Young people and businesses continue to leave for states without income taxes — including New Hampshire.
Case Study #2
In 1966, Massachusetts passed a 3% sales tax that was explicitly labeled "temporary." It was made permanent just one year later. Nearly six decades on, the rate has more than doubled and a new surtax has been added on top.
Starting Rate (1966)
Passed as a "temporary" measure to address short-term budget needs. Made permanent one year later in 1967.
Current Rate
The sales tax rate has more than doubled since its "temporary" introduction, reaching 6.25%.
Surtax Added
A 4% surtax on income over $1 million was passed by ballot measure. The threshold is not indexed to inflation, meaning it will capture more taxpayers every year.
And Counting
The "temporary" tax has persisted for 59 years. It was never repealed, never rolled back, and never sunset. It only grew.
The 1966 sales tax was explicitly marketed as a short-term measure. Legislators assured voters it would be repealed once the budget was balanced.
Just one year later, in 1967, the legislature quietly made the tax permanent. No sunset clause. No voter referendum. Just a vote behind closed doors.
The rate was increased multiple times: from 3% to 5%, then to 6.25%. Each increase was justified as "necessary" and "modest."
The 2022 surtax added a 4% levy on high earners — with a threshold not indexed to inflation, guaranteeing it captures more people every year. The ratchet only turns one way.
What We Have
New Hampshire is the only state in the Northeast without a general sales tax or income tax. That is not an accident. It is a deliberate choice that has made NH one of the fastest-growing, most prosperous states in the region.
NH has never had an income tax. Workers keep what they earn. Businesses choose NH because their employees take home more. This advantage draws families and employers from CT, MA, and beyond.
No general sales tax on goods or services. Granite Staters pay less for everything they buy, from groceries to vehicles. Border towns thrive on out-of-state shoppers.
Investments, retirement savings, and business sales are not subject to state capital gains taxes. Retirees and entrepreneurs choose NH specifically for this reason.
While Connecticut lost 325,000 residents after enacting its income tax, New Hampshire has grown steadily. People vote with their feet — and they are moving here.
NH consistently ranks among the lowest unemployment rates in the nation. The business-friendly tax climate is a magnet for employers and job creators.
NH has one of the highest median household incomes in the country — and residents keep more of it because they are not handing it over in state income or sales taxes.
The Threat
On March 3, 2026, Democrat Andru Volinsky unveiled a $2 billion income tax proposal for New Hampshire. Two days later, 158 Democrats voted against constitutionally banning an income tax. A Saint Anselm College poll (March 2026) found 71% of NH voters oppose an income tax — including 47% of Democrats. The math is simple: they want something their own voters don't.
Estimates based on current neighboring state rates applied to NH income levels.
If New Hampshire follows Connecticut's exact path, here is what happens:
"Small" rate introduced — maybe 1.5% or 2%. Promised as temporary.
First increase. Budget still not balanced. The tax becomes the go-to revenue source.
Rate has doubled or tripled. Spending increases to match the new revenue. No one talks about repeal.
Rate exceeds 5%. People and businesses begin leaving. The tax base shrinks, leading to calls for even higher rates.
Rate approaches 7%. Population has stagnated or declined. The NH Advantage is gone — permanently.
On March 5, 2026, 158 Democrats voted against CACR 10 — a constitutional amendment that would have permanently banned an income tax in New Hampshire. A Saint Anselm College poll found 71% of voters oppose an income tax — including 47% of their own party. They voted to keep the income tax option alive. Connecticut started the same way.
SEE THE FULL VOTESide by Side
| New Hampshire | Connecticut | Massachusetts | |
|---|---|---|---|
| Income Tax | None | 6.99% | 5% + 4% surtax |
| Sales Tax | None | 6.35% | 6.25% |
| Capital Gains Tax | None | 6.99% | 5% + surtax |
| "Temporary" Tax Promise | N/A | Broken | Broken |
| Population Trend | Growing | -325,000 since 1991 | Slow growth |
| Constitutional Protection | Dems blocked it | Spending cap ignored | None |
The pattern is identical: promise a small tax, make it permanent, raise it every few years, watch people leave. 158 Democrats voted to keep this path open for New Hampshire. Find out if your rep was one of them.