Thanks for November: Business tax cuts are workingEDITORIAL
December 08. 2017 12:47AM
We are 29 months into New Hampshire’s business tax cuts experiment.
November brought another month of evidence that it is working.
According to the Department of Administrative Services’s monthly revenue report, general and education fund revenues were $5.5 million ahead of the budget plan adopted earlier this year thanks to the state’s two main business taxes generating more revenue than anticipated.
For the year to date, revenues are $11 million, or 1.6 percent, ahead of schedule.
That is just where the state wants to be: running a modest surplus without tempting Concord to go on a spending spree.
When Republicans pushed through business tax cuts in 2015, State House Democrats warned that shaving the state’s high tax rates slightly would “blow a hole in the budget.” But the cuts have been phased in over several years, allowing natural economic growth to make up for any drop in state revenues.
In fact, business tax revenues are higher than before the rates were cut.
Once fully phased in, the Legislature will have cut the Business Profits Tax by nearly 12 percent, and the Business Enterprise Tax by 33 percent, all while running a budget surplus.
New Hampshire used to have some of the nation’s highest business taxes. We’re on our way to competitive rates, without a broadbased sales or income tax. That’s good for the state budget, good for the economy, and great for New Hampshire taxpayers.