We all know business taxes are an important source of revenue for government. What many people don't realize is that New Hampshire businesses are already the state's largest source of tax revenue. Businesses contribute more than $600 million in business profits taxes (BPT) and business enterprise taxes (BET) each year.

In past years, when the Legislature was faced with a significant deficit, the solution -- the places they eventually turned to "fill the gap" -- were the BPT and BET. Given current economic conditions, this option, if chosen again, will bring damaging results to private-sector employers and the hundreds of thousands of working men and women they employ.

Contrary to popular opinion, New Hampshire is not necessarily a "tax haven" for business. At 8.5 percent, the BPT is already one of the highest in the country. Overall, businesses contribute 55 percent of all taxes collected at the state and local levels. The national average is 44 percent. Only six other states have a higher percentage of state and local taxes coming from businesses.

Other significant revenue sources from New Hampshire's business community include the unemployment insurance tax, communications tax, insurance premium tax and rooms and meals tax. Some studies even suggest New Hampshire's business tax climate is among the worst in the country. A recent analysis from the Tax Foundation noted specifically that New Hampshire's poorest-in-the-nation ranking was due to our high BPT rate combined with the BET, a business tax unique to New Hampshire. A reasonable person can disagree with this ranking, but one thing is clear -- New Hampshire businesses are already providing more than their fair share of government tax revenue.

The Business and Industry Association (New Hampshire's statewide chamber of commerce) recently organized seven legislative plant tours. Manufacturing and high-tech companies with operations in New Hampshire and other parts of the country, or world, hosted the tours. More than 60 state legislators participated in the tours. Our primary motivation in organizing the tours was to help educate and sensitize legislators to the real challenges these companies, and all New Hampshire businesses, face.

The plant tours illustrated that, in addition to high business taxes, New Hampshire employers often absorb higher health care, energy and labor costs relative to locations outside the state. The current recession makes these disparities starker. And, unfortunately for New Hampshire, manufacturing and high technology companies -- the most important piece of the state's economy in terms of employment, wages and overall contribution to gross state product -- have never had more lower-cost options around the globe for locating their facilities than they do today.

Decisions the governor and state Senate and House members make during the 2009 legislative session concerning business taxes, energy initiatives and health care costs will, for many companies, determine whether they keep the lights on and people employed, file for bankruptcy, or simply expand or relocate somewhere else.

New Hampshire businesses, along with the hundreds of thousands of working men and women they employ, are counting on our elected leaders to consider the impact their decisions will have on employers and New Hampshire's economy during this difficult economic time. We are counting on our elected leaders to do no harm.

Jim Roche is president and CEO of the Business and Industry Association.