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Kelly’s LLC disaster: So bad, she voted to repeal it

September 25. 2018 10:56PM

In 10 years as a state senator, Molly Kelly does not have much of a legacy. She anchored the liberal wing of the Senate Democratic Caucus, and was a reliable vote for bigger government and higher taxes. But Kelly has few legislative accomplishments to show for her decade at the State House.

Part of the problem is that many of the ideas Kelly championed were so awful that even she was forced to vote to repeal them. Let us revisit the disaster that was the LLC Tax.

In 2009, Kelly and her Democratic colleagues controlled the Legislature, and were looking for ways to fund massive spending increases. On the last day of budget negotiations, Senate Democrats brought in a plan to apply the Interest and Dividends Tax to Limited Liability Companies if state bureaucrats decided that LLC owners were paying themselves an “unreasonable” salary.

New Hampshire’s small business community was up in arms, protesting what was effectively an income tax on small business owner salaries passed without notice or proper review.

The LLC Tax was such a colossal misstep that the Senate voted unanimously to repeal it in 2010 before it could go into effect.

Before voters trust Kelly with the state budget, let’s remember the messes she’s had to clean up.


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