The Granite State closed out its most recent fiscal year with a budget surplus of more than $400 million. Most of that came from the state’s two business taxes, the Business Profits Tax and the Business Enterprise Tax. Revenues from both were way up over the previous fiscal year and well ahead of projections. It must be noted that these revenues have grown despite (or, as I will explain, because of) more than half-a-decade of Republican tax rate cuts.

You see, fiscal conservatives are operating under a simple and tried premise. Lower tax rates stimulate more economic activity, which stimulates more economic growth, which in turn generates more tax revenue.

Still, some in the House, most of them members of the minority party, are stuck at this pons asinorum of fiscal policy and cannot comprehend how lower tax rates can grow the public treasury, especially lower rates on those “greedy” corporations. When Republican leaders embarked on this tax cutting journey, their opponents said it was doomed to fail and would blow a giant hole in the budget. On this matter they have been proved irremediably wrong.

The tax cutters are back this legislative session with new ideas to keep the momentum going. House Majority Leader Jason Osborne (R-Auburn) is proposing to eliminate the state’s communications services tax (HB 133). Rep. Jeanine Notter’s (R-Merrimack) HB 15 would further reduce the BET from 5.5% to 5%. And Rep. John Janigian (R-Salem) has put forth legislation (HB 100) to accelerate repeal of the state’s Interest & Dividends Tax to Dec. 31, 2023.

Still, our economic law of revenue growth through tax cuts has its limits. A tax rate of zero yields zero revenue. And Osborne and Janigian are looking to eliminate two taxes altogether. Their goal, it appears, is to make the state yet more competitive with our high-tax neighbors and more attractive to the people looking to flee them.

Some Democrats in the Legislature want to actually increase the Interest & Dividends Tax. HB 192 would repeal the previously passed phase out of the I&D Tax, which supporters of the bill say would deprive the state of much needed funds should a recession hit the economy. They had nothing to say about depriving the taxpayers of their much-needed funds should the same recession hit.

Sen. Dan Innis (R-Bradford) thinks keeping the I&D Tax would be a bad idea. “By proposing to end the phasing out of the Interest and Dividends Tax, opponents expressed their desire to increase the financial hurdles faced by state residents,” he said of a similar bill in the Senate. “Imposing a tax on retirement income on New Hampshire seniors only encourages them to relocate to states which do not impose such a tax, like Florida. It’s critical that we end this trend.”

Interestingly, the Wall Street Journal recently observed a trend among deep blue states California, New York, Illinois, Maryland, Hawaii, Minnesota, Connecticut and Washington to bilk high-net-worth individuals as they attempt to escape these high-tax jurisdictions by imposing new wealth taxes. “The confiscatory tax alliance emerged late last week when lawmakers from eight states unveiled plans to target wealthy residents,” wrote the Journal editors.

The Journal quoted Illinois state Rep. Will Guzzardi saying, “We want to send a message that there is nowhere to hide.”

The statement is chilling. Imagine the disdain Mr. Guzzardi and his colleagues must have toward these taxpayers and his fellow residents.

Amazing. And alarming.

Before these rapacious wealth taxes take hold — and there is little doubt they eventually will — people looking for a new home should be made aware that the Granite State is rolling out the red carpet. You’re welcome here anytime.