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Entries in Tax Cuts (8)


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. 


GraniteStateProgress - Santa joins effort to end the Bush Tax Cuts and increase tax fairness

Local activists will be staging event with Santa on Elm St. during Manchester Holiday Parade

Concord – Activists urging an end to Bush-era tax cuts for the nation’s highest income earners is
enlisting an unlikely figure to help lobby for their cause. He’s known by many names to children
around the world - St. Nicholas historically, Father Christmas in England and he’s even to
Basque children as Olentzero – but we usually call him simply Santa Claus. 

This Yuletide, Santa has something more important than cookies and milk on his mind. He’s
taking to the streets of Manchester urging Congress to put the middle class ahead of
millionaires and end tax breaks for the top 2%. 

Santa’s message is clear. “Time to set our priorities straight: Tax cuts for the wealthy means
fewer Pell Grants, fewer Head Starts and more kids shoved into crowded classrooms,” “Mr.
Claus” said today. “Everyone knows that I know who’s been naughty and nice and there is still
time for Republicans in Congress to take action and get into the ‘nice’ category before I have to
start handing out coal.”
WHO: Santa and his activist elves
WHERE:  In front of A Caribbean Affair on Elm, Manchester 
WHEN:  Saturday, December 1st from 2:00 to 4:00 pm in front of A Caribbean Affair on Elm, Manchester


NH House Continues Focus on Jobs and Economy, Passes Business Tax Cut 

House Speaker William O’Brien

“We need to work with our employers to give them confidence to invest, grow and hire. Lowering their cost of doing business and making New Hampshire more competitive will entail a complete transformation in a state government that also rolls back excessive regulations; refuses to increase taxes; and ensures an environment of growth, responsiveness, stability, and support. We understand our state's future depends on a government committed to advancing economic growth and we will continue to advance these goals to preserve and enhance our New Hampshire Advantage.”

House Majority Leader D.J. Bettencourt

“This bill would increase the ability of our small business community to invest in capital equipment. In a recovering economy, we need to give the green light to our entrepreneurs and small business owners to go out and buy machinery, equipment, vehicles, furniture and other qualifying property knowing that they’ll be able to deduct up to $25,000 from their Business Profits Tax. This will contribute to the overall health of our economy and continue our efforts to make New Hampshire more business friendly.”


US Rep Bass Statement on Passage of Small Business Tax Cut Act

WASHINGTON – Congressman Charles F. Bass (NH-02) submitted the following statement for the Congressional Record today regarding H.R. 9, the Small Business Tax Cut Act, which passed the House this afternoon by a vote of 235 to 173, with one Member voting present.

Bass’ statement for the Record follows:

“Today, I had the privilege to honor and remember the life and heroism of Greenland Police Chief Michael Maloney.  We will always be grateful for his service to the community and the sacrifice he made protecting each and every one of us.  My heartfelt condolences are with his family and colleagues during this tragic time.

“My attendance, however, precluded me from being present for the vote on H.R. 9.  Had I been present, I would have serious reservations about supporting this bill, not because I am against tax cuts for small businesses, but because I believe it is time for Congress to move away from a tax code that is filled with a patchwork of temporary provisions – for both businesses and individuals – that leads to an overly complicated and unfair tax system. 

“As someone who owned and helped run a small manufacturing business, I understand the pressures every small business faces each day, whether it is trying to ensure you have enough orders to keep people employed, making payroll each month, complying with onerous and unnecessary regulations, or ensuring your small business can compete in the global economy.   I would be the first person to say we must lower taxes for small businesses, which are the primary job creators in New Hampshire, but this is not the way it should be done.

“We need to do it in a manner that is part of a larger tax reform package that will eliminate loopholes and deductions so we can broaden the tax base and lower rates across the board.  This will not only help small businesses pay lower taxes, but also prevent companies from being able to maneuver through the tax code in a manner that allows them to pay zero taxes.  It is time Congress takes responsibility and shows leadership by working in a bipartisan manner to simplify our tax code so that rates are lowered across the board for individuals and all businesses, loopholes are eliminated, and the base of taxpayers is broadened in order to provide real certainty and a globally competitive playing field for all New Hampshire and American job creators.”



Compromise budget takes first step toward restoring fiscal sanity and economic growth in N.H.

CONCORD, N.H.—The Republican Liberty Caucus of New Hampshire congratulates House Speaker William O’Brien and the House Republicans for passing a responsible budget that completely reverses the course of previous legislatures and historically cuts spending in New Hampshire by 11.7 percent, setting state government on a new course to fiscal sanity.

“There is no doubt that this budget is historically positive for the people of New Hampshire,” said Andrew Hemingway, chairman of the Republican Liberty Caucus of New Hampshire. “Not only did Speaker O’Brien and the House members we elected in November actually do exactly what they promised voters they would do by cutting taxes and spending without any budget gimmickry, this Legislature has set the stage for a stronger economy, which will lead to job creation in the private sector.”

Due to principled leadership from the House Conference Committee members, the budget agreement with the Senate favored the House position in most instances. The balanced $10.2 billion New Hampshire budget for Fiscal Years 2012-2013 relied heavily on House leadership’s position that budget writers could not exceed revenue projections. The Senate was only able to shift revenue projections by 0.4 percent from the House projections in January. At the same time, House leadership was also able to convince Senators not to raise new taxes, fees or add additional downshifting to the counties, cities or towns of the state. In fact, the House was even able to secure additional tax cuts to increase business traffic from out-of-state shoppers.

In general and education trust fund spending, the House was able to secure a $4.42 billion budget, a 12.8 percent decline from the previous cycle. The budget cut is the largest in modern history—maybe longer.

“As an organization that understands the principles that lead to the most prosperity for the most people involve less government spending, lower taxes and fewer bureaucrats enforcing senseless regulations, we are looking at this budget as the first gleam of light from a new dawn of common sense governing,” Hemingway said. “I expect the voters of New Hampshire to respond quite favorably to the principled stand taken by House Republicans, and against the scare tactics and deception of those who would prefer politics as usual.”

Not only did this budget historically reduce appropriations by about $1 billion in all funds and $467 million in general funds, it also eliminated 1,500 unneeded government positions (most of them unfilled, anyway), and it reduced some of the more onerous taxes and fees instituted by the Democrats when they were in power, such as the surcharge on auto registrations. The budget also included comprehensive reforms to the State Retirement system—the first step toward eliminating an unrealistic system that taxpayers can no longer afford.

At the same time, the House compromise budget fully funds education by sending $4 million more than the governor’s budget and 9.5 percent more than the current budget to the local cities and towns. As recognition that restorative change takes time, the budget also funds Health and Human Services programs for the developmentally disabled, children in need of services, children with special needs, domestic violence programs and adoption subsidies, while also prohibiting the use of taxpayers’ money for abortions.


About The Republican Liberty Caucus of New Hampshire

RLCNH, a state chapter of the national Republican Liberty Caucus, was launched in December 2004 to promote and advance traditional Republican Party values, such as low taxes and spending, limited government, individual liberty, personal responsibility, free enterprise and loyalty to the U.S. and N.H. constitutions.