Two former Democratic candidates for governor unveiled a controversial tax plan Tuesday that would impose a 3% income tax and $3 statewide property tax per $1,000 of assessed value to dramatically increase state support for public schools.
Andru Volinsky, a former executive councilor and 2020 gubernatorial candidate from Concord, and former state Sen. Mark Fernald, the 2002 Democratic nominee for governor, announced their “3-3 Tax Savings Plan” at a news conference in front of the State House on March 3. The plan would raise $2 billion annually and replace the current patchwork of state taxes supporting education aid, according to the proposal’s backers.
“The idea behind this proposal is to spread the cost of education more widely and more fairly in a way that can make schools and housing more affordable,” Volinsky said at the news conference.
The plan faces immediate opposition from leaders in both major parties. Republican Gov. Kelly Ayotte reiterated her opposition to broad-based taxes, posting on X: “I’ve said it before, and I will say it again — no income tax, no sales tax. Not now, not EVER!”
Democratic leaders also rejected the proposal. House Democratic Leader Alexis Simpson of Exeter declared any such plan would be “dead on arrival” in her caucus, stating that “New Hampshire House Democrats will not support an income tax. … an income tax has not and will not be considered.”
Former Executive Councilor Cinde Warmington of Concord, the leading Democratic candidate for governor, told WMUR she would oppose a sales or income tax if elected. “I think that the people of our state cannot really afford a new tax right now,” Warmington said. “We will have no income tax. We will have no sales tax on my watch.”
Fernald drew parallels to previous legislative efforts, noting the plan bears similarity to legislation he helped write with a bipartisan group of lawmakers in 1999. That legislation passed both chambers in separate forms but collapsed after then-Gov. Jeanne Shaheen, a Democrat, vowed to veto it.
“Property taxes have gone up faster than inflation, faster than income growth and faster than the growth of the general economy,” Fernald said at Tuesday’s news conference.
State Rep. Tom Oppel, D-Canaan, who joined the news conference, criticized Republican tax policies while supporting the new proposal. Oppel defied his own party leadership last January when he unsuccessfully tried to introduce a bill repealing three rounds of business tax cuts adopted by the Republican-led Legislature over the past decade.
“The false narrative is that one party wants to raise taxes and the other wants to cut them,” Oppel said. “What has happened is the other side (Republicans) has cut taxes for the wealthiest corporations and individuals in this state while raising property taxes through the roof, which has hit the middle class and seniors the hardest.”
House Majority Leader Jason Osborne, R-Auburn, suggested the proposal demonstrated why voters needed to keep anti-tax Republicans in the majority rather than Democrats who might support such measures.
The timing of the announcement on March 3 was deliberate, reflecting the “3-3” structure of the proposed tax system. The plan would fundamentally restructure how New Hampshire funds public education by replacing local property tax variations with a standardized statewide approach combining income and property taxes.
Despite the bipartisan rejection from party leadership, the proposal’s supporters argue it addresses long-standing inequities in school funding while potentially reducing the overall tax burden on middle-class families currently facing high local property taxes.
The plan’s political viability appears limited given the opposition from both parties’ leadership and New Hampshire’s historical resistance to broad-based taxes, particularly income taxes.
