New Hampshire is a state of firsts. It was the first state to declare independence from England, the first to hold a constitutional convention and notably, it is the first state to hold and cast ballots in the nation's presidential primaries. The latter distinction fixes the attention of the nation and undoubtedly many parts of the world squarely on the tiny New England state every four years when it becomes the focal point of national politics.

New Hampshire has voraciously defended its position as presidential primary leader, even though it only represents four tenths of a percent of the nation's population.

The state's small size allows candidates to interact directly with voters as they gingerly try to make their first impressions as White House material. According to the Almanac for American Politics, New Hampshire even frowns upon states that try to hold their primary voting too closely after the spotlight has shown on the Granite state, dismissing candidates that dare campaign elsewhere before devoting time to meeting and greeting New Hampshire voters.

While New Hampshire may have secured its place as home to the nation's first presidential primary, the rest of the country doesn't always follow the state's lead. New Hampshire primary voters gave their blessing to Gary Hart in 1984, Patrick Buchanan in 1992 and John McCain in 2000 -- all of whom did not go on to win their party's nomination.

The northernmost of the original 13 colonies, New Hampshire boasts a lively colonial history. Originally settled as a fishing colony by an English land grant, the state shared a nearly 40 year union with Massachusetts until it was named a separate royal colony in 1679.

The state is credited with leading the revolutionary cause for independence against the British and was among the first to vote for the Declaration of Independence in 1776. Early on, the fiercely independent state established a proud outlaw tradition, refusing to join other states in enacting broad-based income or sales taxes.

Due to an abundance of waterpower, textile mills and agricultural products were the staples of the state's early economy and attracted a wave of new immigrants who must have been impressed with the state's bucolic scenery of lakes, mountains and rivers.

New Hampshire's refusal to enact personal state income tax, general sales tax and other tax burdens originally made it appear rebellious and perhaps somewhat misled. But the lack of a conventional tax schedule led many businesses and high tech entrepreneurs to set up shop in the state, particularly from 1965 to 2000, when its population jumped by a staggering 83 percent.

In terms of local politics, the state's motto, "Live Free or Die," could very well be "Live Income Tax-Free or Die" based on the state's continuing battle over how to preserve its history of rebuffing the conventional tax system while still properly funding critical state programs.

But voter sentiment in this area appears to be undergoing a slow shift, particularly since the governor's office, state legislature and state Supreme Court have been unable to agree on how to correctly finance schools without implementing new sales or personal income taxes.

The state has wound up with an unpopular statewide property tax and a still unresolved issue of how to aid schools and avoid budget shortfalls. Beyond the tax debate, the issues on the state's political landscape echo those of communities across the nation, such as affordable housing problems, prescription drug reform, economic development, social security and the war on terrorism.

Most political predictors place New Hampshire in the "leans Republican" category -- an analysis bolstered by its current all-GOP representation in Congress.

However, the state's voters have elected a Democrat to the governor's post three times and elected President Bush to the White House in 2000 by only 48 percent over Al Gore's 47 percent, with 4 percent going to Green Party candidate Ralph Nader.

All eyes will undoubtedly be on New Hampshire again during November's mid-term election, as the U.S. Senate seat currently held by Republican Bob Smith -- who lost a primary bid for re-election -- is pursued by Republican Rep. John E. Sununu and Democratic Gov. Jeanne Shaheen.

With control of Congress hanging by a few seats, the competitive Shaheen-Sununu Senate race will undoubtedly allow the savvy voters of the Granite State to bask in the political spotlight again.

--By Maureen Hoch, Online NewsHour