The New Hampshire Interest and Dividends tax, implemented 1923, has been gradually reduced and is scheduled for full elimination by 2025.
In 2020 this tax generated approximately $114 million in revenue annually, of which about 92 percent came from households within the top 20% of income earners.
By comparison, the state is paying us in the magnitude of $1 billion annually in employee wages. A 10% wage adjustment would cost $100 million annually.
There are naturally other factors at play here, such as our benefits, but the broader point remains: the state has reduced tax revenue in some areas of the budget while effectively increasing revenue by allowing the purchasing power of state employee wages to substantially decline.
That’s normal almost everywhere. Pay your civil servants crap, then wonder why they do crap work.
ThePandaRider on
This would be helpful if it also showed inflation vs total compensation. Total comp is more important, if you want better healthcare coverage that needs to come from somewhere, if you want more retirement savings that needs to come from somewhere. That’s what gets budgeted and from there the pie is divided up between wages and benefits.
6 Comments
Made in Excel. Sources:
https://apps.das.nh.gov/LaborRelations/cba.aspx?y=latest&a=seiu-1984
https://apps.das.nh.gov/laborrelations/cba_sea_past.aspx
The New Hampshire Interest and Dividends tax, implemented 1923, has been gradually reduced and is scheduled for full elimination by 2025.
In 2020 this tax generated approximately $114 million in revenue annually, of which about 92 percent came from households within the top 20% of income earners.
By comparison, the state is paying us in the magnitude of $1 billion annually in employee wages. A 10% wage adjustment would cost $100 million annually.
There are naturally other factors at play here, such as our benefits, but the broader point remains: the state has reduced tax revenue in some areas of the budget while effectively increasing revenue by allowing the purchasing power of state employee wages to substantially decline.
[603wages.com](https://603wages.com/)
That’s normal almost everywhere. Pay your civil servants crap, then wonder why they do crap work.
This would be helpful if it also showed inflation vs total compensation. Total comp is more important, if you want better healthcare coverage that needs to come from somewhere, if you want more retirement savings that needs to come from somewhere. That’s what gets budgeted and from there the pie is divided up between wages and benefits.
Most people’s wages haven’t.
Live Free or Die baby… and we’re all dying.