Let Them Eat Cake: 35 Years of the Volinsky Lawsuit

By Tom Luther

This is the third post on the Volinsky lawsuit book, The Last Bake Sale.

Thus far in his saga, Volinsky has conflated 1950s Arkansas civil rights into 2025 New Hampshire. He has insulted Christianity with a shotgun marriage to Marxism. He carved a communist hole in the NH Constitution by redefining “cherish” into $7,356.01 (don’t leave off the penny). Like President Clinton once did, I expect him to eventually redefine the meaning of the word “is.” Where does this tale end?

With more spending, of course — from the holy grail of “equitable” taxes: the income tax.

Mirror, mirror on the wall, which tax is fairest of them all? Income, the Snow White of taxes! Surely you remember this from history?

---

The Income Tax Proposal

Specifically, Volinsky calls for a 4% income tax. Presumably this comes with all the exemptions, deletions, exceptions, and supplemental forms that make income tax administration such a glorious tool to manipulate voters — while keeping TurboTax and accountants in business forever.

Once this donkey is loose in the barn, there are no end of socialist carrots and sticks that can be applied, tweaked, altered, and modified. If you thought the legislature had too many laws on the books already, you haven’t seen anything yet. Imagine the office complexes, hiring sprees, and carbon offsets necessary to build and administer this perfect beast!

---

The “Circuit Breaker”

At this point Volinsky acknowledges the distant possibility that some NH residents might not be able to afford this much equity. So he butchers the language one last time, introducing the concept of a “circuit breaker” for the poor that would supposedly protect them from being over-taxed into poverty.

In practice, this device would merely cap the poorest residents’ tax liability while shifting the burden to “others” — softer targets. Snow White gets to pass the poisoned apple to the General Fund. Volinsky admits that the “E” in DEI can be fatal to the poor.

As an engineer, I know a circuit breaker is a protective device designed to prevent overloads and safeguard infrastructure. The function of a Volinsky “breaker,” however, is not protection but revenue harvesting. This is no circuit breaker — it is a linear operational amplifier. And without careful feedback control, op-amps are dangerous toys. Such devices should not be handed to socialists without risking civil war from lopsided wealth distribution.

---

More Taxes, Of Course

He also wants taxes on second homes and an increase in business taxes. Why not?

---

Three Brief Moments of Sanity

Amid this stale, racist policy fruitcake, there are a few fleeting moments of sanity:

1. Special Education — Costs might be modeled with an insurance approach, or even paid entirely by the state to reduce local budget stress.
2. Current Use Exemptions — These distort property taxes and stagnate change.
3. School Calendar & Attendance — Year length and attendance might be adjusted to suit a less agricultural economy.

I agree that restructuring special education spending along an insurance model has merit. I’ll leave it to others to flesh out the details in future legislation that conforms to the NH Constitution and practice.

---

Alternatives That Make More Sense

• Land Value Tax (Georgist model): Rather than Current Use exemptions, I prefer a Georgist approach — taxing the land itself, not the structures. This motivates landowners to increase the utility and income of their property, rather than hiding value in Tyvek-wrapped houses and unfinished permits. StrongTowns.org covers this approach with nuance.
• Homestead Exemption: Instead of taxing second homes or piling on business taxes, I prefer a Homestead exemption. In this system, new homeowners pay the full rate the first year, which declines to about a 75% discount over five years — but only if they reside in the property. Rental, income, and second homes pay the full rate. Florida runs this program with great simplicity and automation.
• Educational Options: The best way to adapt to changing economic realities is not by tweaking calendars from above but by expanding educational choices. Let parents and kids decide what works best, while the legislature stays silent. Innovation rises from the bottom, not from dictates at the top.

---

Closing Thought

Marie Antoinette reputedly said, “Let them eat cake,” to starving peasants.

I’d prefer to avoid the French Revolution’s socialist bloodletting. That’s not my kind of circuit breaker.

---

Blog post contributed by Tom Luther