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Entries in Tax Cuts (12)

Friday
Jun192015

NRSC - AP: Hassan Takes Strong Stand Against Business Tax Cuts 

NRSC

 

Good afternoon –

A few weeks ago it was reported that New Hampshire has lost its competitive edge and is quickly becoming one of the worst business tax climates in the country. Additionally, a non-partisan study found that New Hampshire is totally underperforming when it comes to job growth.    

  • NH BUSINESS REVIEW: Study Finds NH Could Do Better When It Comes To Job Growth. “Adding to arguments that New Hampshire’s economy could use some added oomph, a newly released analysis of post-Great Recession job growth in all 50 states puts the Granite State near the bottom of the pack. Stateline, a nonpartisan, nonprofit news service of the Pew Charitable Trusts, analyzed Bureau of Labor Statistics data for each state since the Great Recession and found that while all have added jobs in that time frame, some have been slower to recover. On average, total employment has increased by 8 percent nationwide since the low point of the recession, but 10 states have seen growth at about 5 percent or lower. New Hampshire was 10th from the bottom, with job growth of 5.08 percent since the state’s employment rate …”(Jeff Feingold, Study Finds NH Could Do Better When It Comes To Job Growth, NH Business Review, 05/28/15)
  • The Tax Foundation Reports That New Hampshire’s Corporate Taxes Ranks 48th In The County. “The non-partisan Tax Foundation ranks New Hampshire’s corporate taxes the 48th best in the nation. This uncompetitive position must be improved if New Hampshire is to generate the kind of business activity that can provide the employment, cultural and infrastructure growth everyone says New Hampshire needs.” (Editorial, NH Biz Taxes: Become More Competitive Or Decline, Union Leader, 05/27/15)
  • New Hampshire’s Planet Fitness Might Relocate Because Of Maggie Hassan’s Anti-Business Agenda. “A day after gym franchisor Planet Fitness signaled its plan to go public, the company has threatened to move its corporate headquarters out of New Hampshire if the state doesn’t make changes to its tax code. … ‘We want to stay here,’ Rondeau said. Planet Fitness employs about 200 people at its headquarters in Newington. ‘It would be cheaper to pay the raise to cover an income tax to move across the border,’ he said. ‘It’s that great of a tax. . . . It’s hard for me to recommend staying.’” (Planet Fitness Threatens To Move Headquarters Out Of N.H. If Tax Code Changes Aren’t Made, Concord Monitor, 05/28/15)

Remarkably, Governor Hassan is standing in the way of new ideas to address this problem, and threatening to shut down the government rather than pursuing solutions. 

  • THE ASSOCIATED PRESS: Hassan Takes Strong Stand Against Business Tax Cuts.  “Democratic Gov. Maggie Hassan is taking a strong stand against Republican plans to reduce the state's two major business taxes as she vows to veto the next state budget if it remains unchanged. Hassan's veto threat came as a 9-member team of lawmakers put the finishing touches on a tentative two-year budget deal. Republicans control both chambers, meaning Democrats have held little sway in the negotiations.” (Hassan Takes Strong Stand Against Business Tax Cuts, The Associated Press, 06/18/15)
  • Hassan Opposes Legislation To Keep Businesses Like Planet Fitness In New Hampshire.  "A change in New Hampshire’s business tax code requested by Planet Fitness was approved in a conference of House and Senate negotiators on Wednesday, without a single Democratic vote in its favor. … The fitness franchise company with 1,000 locations nationwide had threatened to take its corporate headquarters and the 150 jobs that go with it out of New Hampshire if the change was not made. State Sen. Andy Sanborn, R-Bedford, said the change is designed to allow all businesses in New Hampshire to have the same tax options that major corporations currently enjoy, even if the business is organized as a partnership, sole owner or limited liability company...Gov. Hassan may veto the bill..." (Planet Fitness Tax Break Moves Forward, The Union Leader, 06/17/15)  

If Hassan refuses to compromise on something this important for New Hampshire, then how could she be trusted to solve problems in the U.S. Senate?  

###

Saturday
Jun132015

NH Senate Ways and Means Committee supports NH small business growth, jobs 

Concord, NH – In a recent Senate Ways and Means Committee work session, Committee members reaffirmed the Senate’s support for HB 550 as amended by the Senate and passed last week.

“I am thankful for the Senate Ways and Means Committee’s support on this important legislation to reduce a restrictive tax on small businesses looking to grow and expand in the State of New Hampshire,” said Senate Ways and Means Chair David Boutin (R-Hooksett).

“Throughout multiple work sessions and conversations with key stakeholders, we were able to make improvements that will keep jobs in the state of New Hampshire, support new jobs, and welcome new businesses into the state. “

“I appreciate all of the hard work that went into this legislation on behalf of supporting good New Hampshire jobs and look forward to further discussion as the legislation moves forward in Committee of Conference,” added Boutin.

Wednesday
May272015

CEI Today: Tax cut for spirits? Ex-Im Bank, and a minimum wage hike 

Wednesday, May 27, 2015
In the News Today

 

TAX CUT FOR SPIRITS? - MICHELLE MINTON

 
Raise a Glass to Lower Taxes
 
You might not know it, but about half the cost of your preferred alcoholic beverage is made up of taxes and fees. One man in Congress, Rep. Todd Young (R-Ind.) wants to change that. Today he introduced a bill that would introduced a bill that would cut the current federal excise tax rate on whiskey, rum, vodka, and gin.  > Read more 
 

EXPORT-IMPORT BANK - RYAN YOUNG     

 

Politics vs. Principle: Export-Import Bank Edition
 
Since Ex-Im reauthorization is likely to pass the Senate, the political focus moves to the House. Sen. Cantwell tried to get Speaker Boehner to promise to hold a House Ex-Im vote, but he refused. But nor will he get in the way of a vote if members of his own chamber decide to bring one up.  > Read more 

MINIMUM WAGE HIKE - TREY KOVACS

 

Big Labor Money Behind Los Angeles Minimum Wage Hike

 

How much influence did labor unions have in getting the minimum wage hike across the finish line in Los Angeles?
 
A great deal, according to the Department of Labor’s union financial records and the Los Angeles City Ethics Commission that tracks campaign contributions to elected officials. > Read more

Tuesday, June 2, 2015
Washington, DC

 

The Constitutional Limits of the
Endangered Species Act

What limits does the Constitution place on federal regulations under the ESA? Should Congress resolve that issue instead of the courts? Would endangered species be better protected or worse off if PETPO prevails in court or S. 1142 is enacted?
> RSVP & more info: KAP@pacificlegal.org
 

https://cei.org/ceidinner
2015 Dinner and Reception

JUNE 11

 

Join us for CEI’s Bourbon and BBQ Bash: Liberty served smooth and smokin’

 

    

 

CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government.  For more information about CEI, please visit our website, cei.org.  Follow CEI on Twitter! Twitter.com/ceidotorg.

 

 
 
Thursday, June 11
8:30am – 10:30am
 

TEN THOUSAND COMMANDMENTS

Snapshot of the Federal Regulatory State

 






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Thursday
Feb122015

NHDP - ICYMI: Telegraph Editorial: "Tax cuts offer no growth guarantees"

Key Point: "... we’re also not under the illusion that it would lead to an economic promised land of jobs and revenue growth. The more prudent assumption to make when lowering tax rates is that revenue will be lost and will have to be made up by cutting state programs and services or finding new revenue sources... Before lawmakers cut business taxes, they should first explain how they would make up the lost revenue – preferably by identifying offsets that don’t involve magical thinking or hurt the state’s most vulnerable."
 
See below for an excerpt or click here for the full Telegraph Editorial:

Nashua Telegraph Editorial: Tax cuts offer no growth guarantees

If you were sitting around the kitchen table discussing how best to improve the family budget picture, you’d have to make some choices.

Some of them would be obvious, like canceling that family vacation everybody was looking forward to, buying cheaper brands of groceries, perhaps, and not going out to eat.

Other choices would be more involved, like whether someone in the family should get a part-time job to bring in extra money.

The last thing you’d probably do is volunteer for a cut in pay.

Yet, that’s the direction some Republicans in the New Hampshire Senate are advocating when they suggest that the state cut its two major business taxes, the Business Profits Tax and the Business Enterprise Tax.

One bill in the Senate, sponsored by Sen. Jeb Bradley, R-Wolfboro, would lower the state’s Business Profits Tax from 8.5 percent to 8 percent over 4 years. “Lowering the state’s Business Profits Tax would continue to encourage businesses to seek growth and would help attract new businesses to New Hampshire,” Bradley said.

It would also mean $10 million less in revenue for the state in fiscal years 2016 and 2017, and $20 million less in fiscal years 2018 and 2019.

Another bill, sponsored by Sen. Andy Sanborn, R-Bedford, would lower the Business Enterprise Tax from .75 percent to .675 percent over three years and would result in $7.6 million less in fiscal year 2017, $15 million less in 2018 and $22 million less in fiscal year 2019.

Gov. Maggie Hassan has said the tax cuts would create a hole in the budget, though Bradley and Sanborn see things differently.

The underlying premise is that cutting the rates would create more revenue by enticing new businesses to relocate to the state, or prompting those that are already here to expand and hire more workers.

That might be true if the state’s business taxes were the only obstacle to economic growth, but they’re not. Other factors include high energy costs, an aging, less-productive workforce and the exodus of the state’s young adults. As a practical matter, a half percent decrease in the BPT over 4 years is little more than symbolic and is unlikely to turn the state into a business magnet.

We understand that the state’s business tax rates are among the highest in the nation, and we’re not inherently opposed to some reduction. But we’re also not under the illusion that it would lead to an economic promised land of jobs and revenue growth.

The more prudent assumption to make when lowering tax rates is that revenue will be lost and will have to be made up by cutting state programs and services or finding new revenue sources.

Honesty dictates that lawmakers identify which areas of government would take the hit if the revenue growth they project fails to materialize, as we think is the case.

The state’s higher education system? That was targeted the last time Republicans controlled both chamber of the Legislature in 2011-12, but New Hampshire college graduates already carry the highest student debt burden in the country and UNH is already out of reach for many of them. Cutting state support for higher education will only accelerate the outward migration of young people from the state.

Health and Human Services is the state’s largest agency, but they’re already facing a $58 million budget shortfall that is partly the result of the state’s settlement of a lawsuit brought by the federal government with regard to mental health services, and another brought by the state’s hospitals over a tax that was ruled unconstitutional. [...]

Before lawmakers cut business taxes, they should first explain how they would make up the lost revenue – preferably by identifying offsets that don’t involve magical thinking or hurt the state’s most vulnerable.

Click here for the full Telegraph Editorial:
Tuesday
Jan272015

NHDP - ICYMI: Monitor Editorial: Cut to business taxes will only hurt business in NH 

Key Point: "Businesses need good roads and bridges and other infrastructure. To attract employees, they need communities with good schools, parks and other amenities. To the extent lower tax revenue leads to a reduction in public services and state investments in infrastructure and education it will harm the business climate. Business taxes are well down the list of a company’s concerns when locating and in New Hampshire, despite the nominally high rate of the BPT, the overall business tax rate isn’t all that bad. The Tax Foundation ranked New Hampshire seventh in attractiveness to business."

Click here for the full Concord Monitor editorial or see excerpt below.

Haven’t we already heard this story about the wondrous Republican perpetual motion machine? In this latest version, it’s the promise that cutting two of the state’s major sources of revenue, the business profits tax and business enterprise tax, will increase revenue. There’s no reason to believe that’s true or, for that matter, any reason to believe that reducing business taxes will attract and retain businesses. There is, however, good reason to believe that making up for the lost revenue will require even deeper cuts to New Hampshire’s already frugal budget. Those cuts will not just hurt the needy, but make the state less, rather than more, attractive to young, well-educated workers and the businesses seeking to hire them. 

That’s why lawmakers should roundly reject Senate Bills 1 and 2.

In October, after four years of research, testimony and deliberation, the legislatively created New Hampshire Commission to Study Business Taxes issued a report that repeatedly stated that the state’s 8.5 percent business profits tax and 0.725 percent business enterprise tax did not materially affect the state’s ability to compete for businesses. The 12-member commission also found “no basis for concluding that any effect of attracting new businesses or business expansion as a result of a rate reduction would generate additional tax revenue sufficient to compensate for the revenue loss. . . .” Curiously, Sen. Jeb Bradley, one of the sponsors of both tax cut bills, was a member of the commission and now argues in favor of the cuts for the very reasons the commission deemed flawed.

Assuming, as we do, that the tax cuts will shrink state revenue, they could backfire. Businesses need good roads and bridges and other infrastructure. To attract employees, they need communities with good schools, parks and other amenities. To the extent lower tax revenue leads to a reduction in public services and state investments in infrastructure and education it will harm the business climate. 

Business taxes are well down the list of a company’s concerns when locating and in New Hampshire, despite the nominally high rate of the BPT, the overall business tax rate isn’t all that bad. The Tax Foundation ranked New Hampshire seventh in attractiveness to business. What does hurt business is the state’s high property taxes. That’s the single largest tax most businesses pay – equal to 45 cents on the tax dollar, according to one study, and 52 cents on the tax dollar in another. If communities have to offset state spending cuts with property tax increases, businesses lose.

In testimony opposing SB1 and SB2, Jeffrey McLynch, executive director of the New Hampshire Fiscal Policy Institute, pointed out that a loss to the state treasury of $78 million amounts to more than the combined budget of the Department of Resources and Economic Development and Environmental Services and nearly equals the state’s support for its community college system. It’s not a sum that can be offset with a little belt-tightening here and there. [...]

Click here for the full Concord Monitor editorial.