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Tuesday, February 26, 2008

Despite all the advantages of our tax structure here in New Hampshire (no state income or sales tax), we are still home to those who simply will not accept the facts and are determined to get a state income tax. Here is a story from the Boston Globe this morning about such a group. I won't go over the arguments about the issue once again, as I know that those who hold a different view from mine will not be convinced to change their view, and neither can mine be changed but, as a political matter, there is one fact which must be kept in mind when thinking about the issue. If the Democrats were to ever pass an income tax into law, it would be the greatest political gift they could ever give to New Hampshire Republicans. You see, we lost this state politically (after controlling it since the birth of the GOP in the 1850s) in recent years due (in my estimation) primarily to the fact that the demographics of the state have changed. We are now increasingly the home of upper-income white voters who (and this is a national trend) are increasingly liberal on social and foreign policy issues. But they are not necessarily liberal on economic issues in the traditional Democratic fashion. In fact, many are from places like Massachusetts and New York that have long been dominated by traditional tax-and-spend Democratic political machines. The same thinking that has attracted voters in those states to elect GOP Governors (until this last round of elections) is evident in the voting behavior of the folks that have come here to live year-round. Therefore, while they will certainly vote for Democrats when the major issues are on social or foreign policy (which is why the Democrats took control of the state legislature and the two congressional seats in the last election), I do not believe the same dynamic would be at work if the major issues were taxes and spending. Thus, if the Democrats were to pass a state income tax here, the GOP would make that the major issue and, in all likelihood, regain control of the State House. Of course, Democratic Governor John Lynch knows this, which is at least one reason why he continues to vow to veto any state sales or income tax. "The Pledge" lives on in New Hampshire and, ironically, it is maintained by many Democrats as well as Republicans.

The latest CBS/New York Times poll shows Obama gaining strength.

Jay Cost points out that the race for the Democratic nomination is not over. But, as I pointed out in Friday's post, she really needs to win in Ohio, Texas and Pennsylvania to get this thing to the convention. John Diliulo also believes it's not over till it's over.

No matter who wins the Democratic nomination, there are two big issue facing the Presidential contenders. One is the economy. The other is the Iraq War. The economy seems to be going from bad to worse. This should be a plus for the Democrats, as they always seem to have the advantage on this type of issue. Of course, the Democrats control Congress, so it won't be as easy to blame the economic woes of the country on the fellows in power, since the two parties are sharing power at the moment. Still, painting Republican bankers and corporate CEOs as the bad guys has always worked in the past, and some of them deserve the blame this time around. As for the Iraq War, the Democrats are going to be pulled by their base to get out of Iraq with arguments like this one in today's Washington Post. Americans don't like to send their sons and daughters to fight in wars that can't be won, and that is the key. Is the Iraq War a lost cause? If Americans have concluded that it is, then Obama should win on that issue. But if John McCain can convince voters that the opposite is true (and if the facts on the ground aid him in making that case), then he will have a powerful tool to aid him in winning the Presidency. As I write this in February, it is impossible to say what the public mood will be in November. Only time will tell.

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