Once again the Federal Government has vented its wrath on the private sector, this time with possibly devastating consequences.
In the last few days, the Department of Labor, with the blessing of the Justice Department, has levied huge tax sanctions on businesses in the State of New Hampshire, perhaps in the order of magnitude of $50,000,000.00.
What horrendous crime prompted this group of lame duck bureaucrats to extract such a price?
It seems that in June of 1978, Governor Meldrim Thompson, who has since been twice rejected by the voters of New Hampshire. vetoed a law which would have brought the State of New Hampshire into compliance with the Federal Unemployment Tax Act of 1976 (with an effective date of January 1, 1978).
The following year, under the more reasonable leadership of Governor Hugh Gallen, the State Legislature did pass a bill bringing the state into compliance with federal directives. At that time there was apparently an agreement made between the State and Federal governments, to the effect that if the state did come into compliance relative to federal laws on unemployment benefits, that no sanctions would be requested.
Should these sanctions stand, then a dangerous precedent will be set, one in which the private sector remains liable for actions taken by publicly elected officials. It would seem more reasonable that such penalties should be enacted on those individuals who were responsible for both vetoing legislation mandated by government fiat while, at the same time, failing to advise the businesses of the State of New Hampshire of potential penalties resulting from his actions.
Such vindictive and arbitrary penalties on the New Hampshire business community must not be allowed to stand.
