Republicans on the Senate Finance Committee voted today to give big businesses more tax giveaways while making small businesses and middle class families pay the price.
“Our budget is a statement of priorities and with the actions taken by the Senate Finance Committee over the last week have clearly demonstrated they side with large corporations rather than the working people of New Hampshire,” said Senator Woodburn. “The cost of these tax giveaways is clear and the price is dear. Rather than fund Medicaid Expansion, which is helping tens of thousands of Granite Staters and strengthening our economy, Senate Republicans have decided to give tax cuts to large, out-of-state corporations instead.”
The Senate voted to approve an amendment that reduced the Business Profits Tax by 0.2% and the Business Enterprise Tax by 0.025% in Fiscal Year 2017. Based on the fiscal notes in SB 1 and SB 2, the original vehicles for the tax giveaways, these tax cuts would reduce state revenues by $15.6 million in Fiscal Year 2017. Senate Democrats have fought to include the extension of Medicaid Expansion in the budget, which would cost about $12 million in Fiscal Year 2017, far less than the cost of the business tax cuts.
“New Hampshire’s business community has called on us to continue the state’s successful expansion program because it’s reducing heath care cost-shifting onto our families and businesses, strengthening the health of our workforce, and boosting our economy,” said Sen. Lou D’Allesandro, ranking Democratic member of the Senate Finance Committee. “Our businesses need healthy workers and reductions in energy rates before they need a 30th tax reduction in 8 years. New Hampshire is a great place to do business now and these tax cuts do nothing to address the real problems facing our growing economy.”
Senate Republicans’ big business tax giveaways would cost $15 million in the next biennium, which is more than the cost of continuing the state’s successful Medicaid expansion program for 40,000 Granite Staters.
“We’ve heard throughout the budget process that New Hampshire needs to ‘live within its means.’ If we cut business taxes today only to put off their full consequences for later years, this action violates that notion entirely,” said New Hampshire Fiscal Policy Institute (NHFPI) Executive Director Jeff McLynch.
“The Finance Committee has approved a cut of $14 million from the FY 2017 budget while the state struggles to find necessary funding for higher education, health care, and other services to support vital human needs,” said McLynch.
“These proposed reductions in business tax rates will reduce revenue by more than $80 million per biennium when fully phased in, with no plan to replace the lost revenue,” said McLynch.
“Phasing business tax reductions in overtime simply puts off – for another day and onto future legislatures — the difficult choices and tough tradeoffs that would have to be made to accommodate the revenue losses certain to result from business tax cuts,” said McLynch.
Not to mention that Senate Republicans have also proposed cutting more than $3 million from the Governor’s proposal for substance misuse treatment and defunding the state’s landmark mental health settlement.
“Senate Republicans are putting their majority at risk as they vote for more big business tax giveaways while cutting critical economic priorities and threatening health coverage for 40,000 Granite Staters,” said New Hampshire Democratic Party Chair Ray Buckley. “From cutting funding for substance misuse treatment to refusing to continue New Hampshire’s successful Medicaid expansion program, Senate Republicans’ budget proposal would hurt the health and economic wellbeing of our communities and undermine the state’s ability to lay the foundation of a new generation of economic growth.”