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More business tax cuts?

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On Wednesday, February 22 the Senate heard public testimony on two bills to cut business taxes.

SB 1 would gradually cut the business profits tax from 8.2% to 7.5% by 2021. 

SB 2 would cut the business profits tax from 8.2% to 7.5% in 2017, and the business enterprise tax from 0.72% to 0.5% in 2018.  

As part of the last budget compromise, the business profits tax is already scheduled to decrease to 7.9% in 2018, provided that state revenue stays high enough.  The business enterprise tax would similarly decrease to 0.675%.

Together the business profits tax and business enterprise tax account for over one quarter of state tax revenue

Supporters of SB 1 and SB 2 argue that business taxes are still too high in New Hampshire. 

“We have to recognize that 27 states in America have also cut taxes,” Sen. Andy Sanborn told NH1 News. “Every single one of them have cut taxes further, deeper, or bigger, than New Hampshire has.” 

Bill opponents note that New Hampshire’s lack of an income or sales tax counterbalances business taxes.  Given the critical need for funding for child protective social workers, addiction treatment, and infrastructure, they argue that New Hampshire cannot afford deeper business tax cuts.

UPDATE: Read our Citizen Voices℠ report and find out where New Hampshire stands on this issue.

 

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