Today the Senate voted to pass Senate Bill 1, reducing the rate of the business profits tax, and Senate Bill 2, reducing the rate of the business enterprise tax. The Republican-led Senate voted to pass SB 1 & SB 2 on a party line vote of 14-10.
“Because they are unwilling to consider reasonable revenue changes – including a modest increase in the tobacco tax – the New Hampshire House of Representatives is currently decimating critical economic priorities for our state, including cutting the Department of Transportation in half, taking away health coverage from tens of thousands of people, cutting services like meals on wheels for seniors, cutting funding for higher education, and even cutting travel and tourism promotion in half,” stated Governor Maggie Hassan. “These two bills would create even deeper holes in this and future budgets, negatively impacting our ability to invest in the shared priorities that are critical to the success of our people, businesses and economy. Further eroding the revenue sources that do exist is irresponsible and will lead to further reductions.”
“While we must maintain our low-tax environment, which the Tax Foundation ranked as the seventh-best in its business tax climate index, we must also continue investing in priorities such as a strong and healthy workforce pipeline, a modern transportation infrastructure, and safe communities that businesses tell me are critical to their ability to grow, thrive and create jobs. As we face ever-tightening budgets, we must examine the fiscal impact of these tax breaks with the same scrutiny as any new spending, and supporters of these bills must address how the lost revenue would be offset,” concluded Hassan.
These tax giveaways are not going to do anything to help fix any of the dozens of problems currently facing our state. The Republican’s in the legislature are refusing to do anything but force more cuts to programs like Meals on Wheels and substance abuse treatment. These tax breaks will not help fix the hundreds of failing roads and bridges that are literally crumbling beneath us.
“With the House making draconian cuts to budget, we are seeing massive cuts to the department of transportation, mental health services, development disabilities waitlist, substance abuse treatment, university system, social services for the elderly, travel and tourism, and the Veterans Home,” said Senate Democratic Leader Jeff Woodburn. “The cost of these tax giveaways is clear and the price is dear. The House Republican majority seems to have answered the question of who’s going to pay. Senate Republicans who support these fiscally irresponsible tax cuts should tell the public what additional cuts they plan to make.”
“Businesses need a modern and safe infrastructure, high-quality schools, and healthy, safe, and livable communities,” said Senator Woodburn. “These tax giveaways will hurt New Hampshire’s ability to provide these critical economic priorities. We should be investing in these priorities not add more devastating cuts on top of what the House cuts.”
An in-depth look at the GOP Budget will show that they care less about the people of New Hampshire and more about giving away tax breaks to large corporations.
“Just this week we’ve seen how far the House has gone in its one-sided efforts to balance the budget, making drastic cuts to transportation, health care, and services for the elderly, the homeless, and Granite Staters with developmental disabilities. Layering in another $15 million in cuts will endanger state government’s ability to serve the people of New Hampshire and its ability to compete with other states to attract our future workforce,” said New Hampshire Fiscal Policy Institute Executive Director Jeff McLynch.
“The proposed business tax cuts will not create jobs or foster economic growth, but will instead drain millions of dollars out of the budget each year,” added McLynch. “New Hampshire can do better. Rather than add to the long list of tax cuts it has made in recent years, New Hampshire should invest in the future by providing needed resources to public colleges and universities, and protect the most vulnerable among us today.”
The Republicans in the House and the Senate have their priorities all wrong. Their immoral budget will hurt tens of thousands of hard working Granite Staters and line the pockets of the wealthy.