Tom Fahey reports in the Union Leader that Governor John Lynch is defending the expansion of state business taxes…

Lynch said the changes were appropriate, and will put businesses on a more level playing field. Right now a company that incorporates pays one sort of tax, an LLC pays another, he said.

“I do believe it is closing a loophole,” Lynch told about 75 members of the Business and Industry Association. “The vast, vast majority of businesses are already paying their fair share of taxes and won’t be affected.”

…even as business owners protested what they see as an income tax on owners of LLC’s.

Representatives of the small business community called on Gov. John Lynch today to use his executive power to block a new tax they say will hurt the state economy.

The group opposes a proposed expansion of the state’s 5 percent interest and dividends tax to include distributions by limited liability corporations (LLCs).

Speakers said the new tax will hurt job growth and investment, and called on tax haters to file comments on their Web site, www.stopthellctax.com.