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100-Plus Organizations Urge Congress to Reject Giant Tax Loophole for Offshoring and Tax Avoidance

Republican Proposal for a “Territorial Tax System” Would Encourage Corporations to Send Jobs Offshore and Avoid Paying Taxes

(Washington, D.C.) Today, more than 100 organizations sent a letter urging members of Congress to reject a proposal that would allow U.S. multinational corporations to pay little to nothing on their offshore profits.

President Trump and Republican leaders in Congress included this proposal for a “territorial tax system” in the tax framework they unveiled last week.

The letter says, “This is an incredibly bad idea. Ending taxation of offshore profits would give multinational corporations an incentive to send jobs offshore, thereby lowering U.S. wages. It would also be a giant loophole for corporations to use accounting gimmicks to move their profits to tax havens, resulting in the loss of billions of dollars in tax revenue for the United States.”

“I’ve got to hand it to them. They’ve really outdone themselves this time. It must take a lot of effort to come up with an idea this bad,” said AFL-CIO President Richard Trumka. “It takes a lot of nerve to propose tax incentives for offshoring and then try to fool people into thinking you’re doing the exact opposite. Up is down, black is white.  What a con job.”

“Already, the U.S. encourages tax avoidance by allowing U.S. corporations to indefinitely defer taxes on profits that they book offshore. If the United States moves to a territorial tax system, multinational companies would have even greater incentive to engage in accounting tricks and move their profits to countries with zero or single-digit corporate tax rates. Corporate bosses would win while the rest of us would be left to pick up the tab,” said Alan Essig, executive director, Institute on Taxation and Economic Policy

“This scheme is a massive tax cut for wealthy corporations, that puts Main Street businesses and domestic companies at a terrible disadvantage,” said Frank Clemente, executive director, Americans for Tax Fairness. “We must continue to fully tax the profits U.S. corporations make offshore. If they pay less U.S. taxes on offshore profits than they pay now, or if they pay no taxes, they will have even more incentive to send jobs offshore and shift profits to tax havens to avoid paying their fair share.”

“It is, quite simply, the largest offshore loophole in the history of our tax code,” said Gary Kalman, Executive Director of the Financial Accountability and Corporate Transparency (FACT) Coalition. “While hard to fathom, the proposal creates new and greater incentives to book profits offshore. When you get past the rhetoric, they propose a near zero percent tax on all profits moved offshore. Other countries have tried this, failed, and are now struggling desperately to fix it. How do you look at their failure and say ‘let’s do the same?’”

For more details on why a “territorial” tax system rigs the rules of the economy in favor of multinational corporations and against working people, see this fact sheet from the Institute on Taxation and Economic Policy (ITEP).

Trump Proposes $5 Trillion In Unfunded Tax Cuts

President Donald Trump delivers the Address to Congress on Tuesday, February 28, 2017, at the U.S. Capitol. This is the President’s first Address to Congress of his presidency. Official White House Photo by Shealah Craighead

As if our tax system was not already rigged to benefit the top 1%, here comes President Trump to take more money from working families and give it straight to the people at the top.

Trump unveiled his “new” tax reform bill that is nothing new. It is the same failed trickle down tax policy that has hurt working families for more than 30 years. This new tax plan is nothing more than a massive giveaway to the wealthiest Americans and big corporations.

Richard Trumka, President of the AFL-CIO called the new tax plan a “con game against working people.”

“The tax plan Republicans put out today is nothing but a con game, and working people are the ones they’re trying to con. Here we go again. First comes the promise that tax giveaways for the wealthy and big corporations will trickle down to the rest of us. Then comes the promise that tax cuts will pay for themselves. Then comes the promise that they want to stop offshoring. And finally, we find out none of these things is true, and the people responsible for wasting trillions of dollars on tax giveaways to the rich tell us we have no choice but to cut Medicaid, Medicare, Social Security, education and infrastructure. There always seems to be plenty of money for millionaires and big corporations, but never enough money to do anything for working people.”

The Americans for Tax Fairness estimates that Trump’s tax plan would rip a $5 trillion dollar hole in our federal budget and would drastically increase our national debt.

“The resulting jump in the deficit threatens funding of Social Security, Medicare, Medicaid, public education and other vital services,” Americans for Tax Fairness wrote.

“This tax plan will be a slow-motion disaster that hurts our country for years to come,” said Lee Saunders, President of AFSCME. “It is deeply irresponsible to let even a penny more in tax cuts go to the wealthy and corporations, while working people are barely keeping their heads above water, our roads and bridges are crumbling, our children face steep inequalities, and our seniors struggle to retire with dignity.”

“Our nation faces challenges that are not shared equally. The super-wealthy and corporations can and must shoulder their fair share of the burden. The plan announced today will further rig the system against working families and our communities by strip-mining the public services we all rely on. We cannot continue to put the interests of the rich and powerful before the interests of our country,” added Saunders.

“Everyone complains about taxes, but most of us want a tax code that is fair. Donald Trump’s tax proposal just makes it worse,” said AFT President Randi Weingarten.

The plan would reduce the number of tax brackets from seven down to three and slash the corporate tax rate in half. These cuts would only benefit large corporations, hedge fund managers, millionaires and billionaires like Donald Trump. 40% of the proposed tax cuts would go directly to the top 1% of Americans.

“The idea that this plan would help average Americans instead of the wealthy and big corporations has been a hoax all along,” said Frank Clemente, executive director, Americans for Tax Fairness. “This isn’t ‘tax reform,’ it’s just a big giveaway to millionaires and corporations, and it won’t ‘trickle down’ to the rest of us. It won’t help small businesses, but it will help Wall Street hedge fund managers and real estate moguls like Donald Trump. This plan will not lead to robust job creation or economic growth, but its eye-popping cost will lead to deep cuts in Social Security, Medicaid, Medicare, and public education that will leave working families in the cold.”

(The Americans for Tax Fairness have a full rundown of the proposed tax cuts and tax increases resulting in a nearly $5 trillion dollar deficit.)

Progressive groups are already pushing back against the Republican agenda to cut taxes on the wealthy at the expense of working people. Not One Penny, a coalition of progressive groups including MoveOn, Indivisible, and the Working Families Party created a petition opposing these tax cuts.

The petition states:

“I pledge to oppose any effort to cut taxes for the wealthy and well-connected. Not one penny in tax cuts for millionaires, billionaires, and wealthy corporations.”

All across America, working people are still struggling to pay their bills and have given up on the idea of saving for the future. We do need real tax reform, not handouts to the wealthiest among us. We need to close the loopholes that allow corporations to pay nothing in taxes while small businesses are paying upwards of 30%. We need a tax plan that puts money back in the hands of working families who need it not millionaires and billionaires who are already failing to pay their fair share.

“The president’s plan seems tailor-made to benefit himself and his businesses, but we don’t know because he hasn’t released his taxes. Trumpcare was defeated because millions of Americans rose up to stop attacks on the most vulnerable. Unless the president is prepared to work with Democrats and sensible Republicans on real tax reform that improves working people’s lives and ends handouts for the wealthy and corporations, today’s Trumptax plan will either catastrophically hurt working families or, hopefully, suffer the same fate as Trumpcare,” added Weingarten.

Tax Giveaways For The Wealthy, While Kids Get Funding For Education Through KENO

This is why we cannot have nice things.  

Our screwed up system of state and local taxes creates many problems for state legislators when crafting our bi-annual state budget.  Our current system means we have to rely on the “sin taxes” aka booze and smokes.  Now they are basing funding for kindergarten on Keno sales.

Thats right. Instead of funding full day kindergarten as both Governor Sununu and Executive Councilor Colin Van Ostern campaigned on, Republicans have agreed to partially fund full day kindergarten with revenue from a new Keno lottery game.  We are basing funding for the education of our children on Keno.

The Concord Monitor reports:

The amendment approved by a committee of conference would provide an additional $1,100 per full-day kindergarten student and would legalize the online lottery game keno to help pay for it. The plan also guarantees the funding even if keno revenues aren’t enough to cover the grants.”

The $1,100 additional adequacy grant does not cover the costs of full day kindergarten as the Union Leader explains.

The state currently offers school districts a grant of $1,800 per student for kindergarten enrollment. That’s half the so-called “adequacy grant” of $3,600 for students in grades 1-12, assuming half-day kindergarten programs.

Throughout the budget process Republicans have been saying we cannot afford to cover our proposed expenses and pay for full day kindergarten, but there is plenty of money to drop the Business Profits Tax.

Jeff Woodburn the Democratic Minority Leader in the NH Senate said:

Senate Democrats have been leading on Kindergarten for years, and we are glad Governor Sununu has at least attempted to follow our example. But, today’s failure to support full-day kindergarten like any other grade while giving even more tax cuts for the wealthy elite is a major disappointment and once again demonstrates Governor Sununu’s failure to lead. The fact that Governor Sununu could not get the Republican House to compromise raises real questions about the Governor’s commitment to full-day kindergarten and shows, once again, his commitment to partisan politics.”

“Just like his broken campaign promises to lead on reducing tuition at our colleges and universities and on family and medical leave insurance, this kindergarten shell game demonstrates Governor Sununu’s desire to put partisan politics ahead of meaningful progress for everyday Granite Staters.”

It is very clear that Republicans in the Legislature do not care about working people and children as they refuse to make full day kindergarten mandatory and fail to fully fund full day kindergarten.  They are more than willing to slash taxes on “business owners” at the expense of the needs and priorities of the state.

I do not want to hear any Republican say that we cannot afford  to fix our crumbling roads and bridges, fully fund full day kindergarten, invest in repairs for local schools, or that we cannot afford to expand rail service into NH until they replace the tax giveaways in this budget.

New Petition To Uphold The Governor’s Veto Of This Reckless Budget

Sign the Petition (1)

Governor Hassan vetoed the Republican budget saying;

“I have vetoed the budget passed by the legislature because it is unbalanced, makes false promises about what it funds, and gives unpaid-for tax giveaways to big corporations, many based out-of-state, at the expense of critical economic priorities, including higher education, health care, public safety and transportation. The long-term impact of these unpaid-for corporate tax cuts will create a more than $90 million hole in future budgets, further eroding our ability to encourage economic growth.”

We must uphold Governor Hassan’s veto and end the unfunded tax giveaways written into this unbalanced budget.

We are calling on all of our elected representatives to vote and uphold Governor Hassan’s veto and force the leadership to work together and find a compromise that will keep New Hampshire moving in the right direction.

The Petition reads:

We believe that New Hampshire is moving in the right direction and this reckless budget will only take us backwards. We must end these unfunded tax giveaways to big business that will blow a $90 million dollar hole in our state budget.

We call on you, our elected representatives, to uphold Governor Hassan’s veto and work together to properly fund the needs and priorities of our great state. Priorities like rebuilding our crumbling roads and bridges, investing in our public schools, and providing the needed funds to combat the growing heroin epidemic.

Please sign the petition below or click here to sign.

 

  When you are done signing the petition, please send a letter to you state reps asking them not to fall victim to the “Kansas Tax Cut Trap” that will blow a $90 million dollar hole in our state budget. Click here to send your letter or fill out the form below.

 

 

ICYMI: NH1 Reports on Former Kansas Budget Director Warning of Perils of Unpaid-For Corporate Tax Cuts

Concord, N.H. – As Chris Sununu and Republicans in the legislature continue to push their plan to blow a $90 million hole in the budget for unpaid-for tax cuts for big corporations, NH1 News reported on comments from former Kansas State Budget Director Duane Goossen warning of the negative impact of unpaid-for tax cuts.

Goossen warned that after Kansas implemented massive, unpaid-for tax cuts, the state is now “falling behind its neighbors in economic growth” and “has moved into a cycle of perpetual budget crisis.”

 

Click here for video of Goosen’s comments or see transcript below:

GOOSSEN: “Kansas is falling behind its neighbors in economic growth. The economic benefits that were touted at the beginning have not proved to be true and Kansas has moved into a cycle of perpetual budget crisis.”

NH Fiscal Policy Institute Highlights Failures Of Kansas’s Tax Cuts

Kansas Tax Cuts: Lessons for New Hampshire
Offers Legislators Context for Considering Impact of Proposed Business Tax Cuts 

Concord NH – In advance of next week’s vote on the state budget, more than 50 legislators gathered in Concord today to hear a first-hand account of the wide-reaching impacts of Kansas tax cuts and to consider the consequences of similar efforts to reduce taxes here in New Hampshire. Hosted by the New Hampshire Fiscal Policy Institute, “Kansas Tax Cuts: Lessons for New Hampshire” sought to help policymakers develop a deeper understanding of the effect tax cuts are having on families and communities in Kansas and to demonstrate the failure of tax cuts to produce promised economic growth, the main argument offered in favor of lower business tax rates in New Hampshire. 

“Throughout the debate over business taxes, we’ve been told tax cuts are necessary to make New Hampshire more competitive and to boost its economy. Yet, as Kansas’ experience makes clear, tax cuts are no guarantee of job growth. Choosing tax cuts over investments in education and infrastructure will lead the state into a downward spiral,” said Jeff McLynch, executive director of the New Hampshire Fiscal Policy Institute. 

The event featured a panel discussion and presentation by Kansas Center for Economic Growth Executive Director Annie McKay and Senior Fellow Duane Goossen. Mr. Goossen was the Kansas state budget director from 1998 to 2010 and served seven terms in the Kansas House of Representatives.

“A misguided plan to cut taxes for Kansas businesses in the name of job growth resulted in a tax shift, which increased taxes on hardworking Kansas families. Lawmakers promised Kansans ‘pro-growth’ tax policy, but all this plan delivered was an increase in the number of families struggling to make ends meet,” said Annie McKay. 

Proponents of business tax cuts suggest that business taxes in New Hampshire are out of line with other states and that tax cuts are needed to make the Granite State more competitive. The budget plan approved by the legislature in June included multiple changes to New Hampshire’s business tax structure, changes that would drain more than $20 million out of the FY 2016-2017 budget and more than $100 million out of each future budget, once fully implemented. Governor Hassan vetoed the budget in part due to the impact this revenue loss would have on future budgets.

“Kansas went from annual budget surpluses to massive deficits as a result of these tax cuts, which were promoted as necessary to support businesses and to increase economic growth,” said Duane Goossen. “These tax cuts left the state unable to balance its budget, led to a credit downgrade for the state, and forced increases in other taxes and fees for average citizens. What’s more, Kansas’ job growth rate continues to lag the region, and businesses and families have left the state due to its lack of investment in important public services.” 

The first full year of tax cuts in Kansas resulted in greater revenue loss than the three years of the Great Recession combined, a revenue shortfall that is jeopardizing funding for education, roads and bridges, and other components essential to a strong economy. Efforts to close the Kansas budget gap also put added pressure on local governments and forced many areas to raise property taxes in order to maintain basic levels of service. In fact, 67 counties enacted property tax increases to offset the added cost of downshifted responsibilities. Property taxes increased by as much as 20 percent in some counties, and 17 of the 20 counties with the highest increases were rural. 

“As the Kansas experiment demonstrates, tax cuts that drain state resources have far reaching impacts for families, communities, and state economies. New Hampshire cannot afford to follow Kansas’ perilous path,” said NHFPI Executive Director Jeff McLynch.

“New Hampshire already lacks sufficient resources to meet its needs,” added McLynch. “Reducing revenue still further will only make it harder to maintain our roads, educate our children, and provide health, safety, and other public services essential to ensuring a strong economy and shared prosperity for all in the Granite State.”

NHDP Chair Buckley: Sen. Forrester Crossed A Line With Her Toxic Political Rhetoric

Raymond Buckley, Chair of the NH Democratic Party 

Whether Sen. Jeanie Forrester’s recent opinion piece (Monitor Forum, Aug. 26) was motivated by her continuing desire to do Sen. Kelly Ayotte’s political dirty work or by Sen. Forrester’s own political ambitions, the fact remains that her piece was as false as it was offensive.

It is entirely expected that over the course of developing a budget for our state there will be disagreements over priorities. But Sen. Forrester crossed a line with her toxic political rhetoric that has no place in any civilized budget discussion. 

While Sen. Forrester is correct that there have been regular budget meetings with the governor and legislative leadership of both parties, I understand that Sen. Forrester has been conspicuously absent, despite her role as Senate Finance Committee chairwoman.

Not only has Sen. Forrester made it perfectly clear that she has no interest in good-faith budget negotiations, but she’s now launching outrageous political attacks to distract from the shortcomings of the fiscally irresponsible Republican budget.

The Republican budget would set up our state’s economy for failure by creating a $90 million budget hole in order to enact unpaid-for corporate tax cuts at the expense of critical priorities for our people and businesses, such as higher education, transportation and addressing the heroin crisis.

Gov. Hassan and Democrats in the Legislature have made clear that they are particularly concerned that the Republican budget falls short on combating our state’s heroin epidemic, and the governor’s compromise proposal includes an additional $5.7 million to help address this critical public health and safety challenge.

Linda Saunders Paquette, a leading advocate in the fight against substance abuse, recently wrote “When it comes to combating New Hampshire’s growing substance abuse epidemic, Gov. Hassan’s proposed budget compromise is clearly better for both sides than the alternative, or in this case, alternatives.” Meanwhile, Sen. Forrester had the audacity to question the commitment of the governor and Democrats in the Legislature as they fight for additional funding to address this pressing public health and safety challenge.

Public health and safety officials have made clear that the single most important action we could take today to combat the heroin epidemic is to reauthorize our state’s successful Medicaid expansion program, and treatment providers have indicated they are waiting to expand programs and facilities until they have certainty that Medicaid expansion will be reauthorized.

Yet Sen. Forrester refuses to reauthorize Medicaid expansion today for no reason other than partisan politics.

Instead, Sen. Forrester continues to push for a plan that would create a $90 million hole in the state’s budget for years to come, undermining critical economic priorities like holding down college tuition, combating substance abuse, maintaining our roads and bridges, and protecting access to quality, affordable health care.

Sen. Forrester and Republican leadership openly acknowledge that they don’t even know if their irresponsible plan would create economic growth.

But it’s hardly a mystery what unpaid-for corporate tax cuts would do to our state. All we need to do is look at what’s happened in states like Kansas, where these Koch Brothers policies have already played out.

Experience shows that unpaid-for corporate tax cuts don’t produce economic growth, just rivers of red ink and deep cuts to critical economic priorities.

Not to mention that the irresponsible budget Sen. Forrester is pushing even raids dedicated funds, a clear and undeniable violation of Forrester’s own campaign promises to her constituents.

And while Sen. Forrester even tries to attack Gov. Hassan on funding for mental health services, it was Forrester and her Republican colleagues who suggested that the Department of Health and Human Services should simply violate the state’s landmark mental health settlement.

Sen. Forrester’s overheated political rhetoric serves only to harm efforts to pass a responsible budget.

I urge Sen. Forrester to stop trying to score political points, and instead negotiate in good faith so we can pass a budget that truly meets the needs of New Hampshire’s people, businesses, and economy.


Courtesy of the NHDP
Also published in the Concord Monitor

NH GOP Playing “Games” With Budget By Forcing Tax Cuts That “Do Not Pay For Themselves”

GOP-Appointed CBO Director Makes Clear “Tax Cuts Do Not Pay For Themselves”

Concord, N.H. – As Republicans in Concord continue to refuse to negotiate in good faith on a responsible budget compromise, Senate President Chuck Morse admitted “he could not guarantee” that the unpaid-for corporate tax cuts Republicans are pushing would promote economic growth.

Morse added, “We never came in and said, we’ll lower the business taxes, and we’ll have all this growth.”

House Speaker Shawn Jasper previously admitted that Republicans’ unpaid-for tax cuts would create a massive budget hole, writing “I do not believe that cutting [corporate taxes] will bring in more revenue, nor do I believe that by themselves they will make New Hampshire a more attractive state for businesses to locate to or to expand.”

“It’s completely irresponsible that Republicans like Chuck Morse and Shawn Jasper are continuing to push unpaid-for corporate tax cuts that they themselves admit would create a budget hole while not promoting economic growth,” said New Hampshire Democratic Party Chair Ray Buckley. “All you have to do is look around the country at places like Kansas that have already tried these failed Koch Brothers economic policies to see that all they bring is rivers of red ink and cuts to critical economic priorities.”

The Hill also reports, “The director of the nonpartisan Congressional Budget Office (CBO), who was appointed by GOP lawmakers earlier this year, said Tuesday that tax cuts don’t pay for themselves… ‘No, the evidence is that tax cuts do not pay for themselves,’ Hall said. ‘And our models that we’re doing, our macroeconomic effects, show that.’”

Yesterday, Neal Kurk said out loud what observers have long known to be true: New Hampshire Republicans are playing political games with the state’s budget and economy.

When asked why Republicans blocked funding to pay for road maintenance, Kurk told NHPR, “some of it has to do with the fact that some of us believe that there are consequences to the Governor’s veto of the budget and one of them is that things that normally would have gotten done, will not get done, or will get delayed.”     

The Concord Monitor also reported, “Partisan politics were on full display at the meeting Wednesday” as Republicans blocked transportation funding and tried to score political points against Governor Hassan.

“At least give Neal Kurk points for honesty for admitting that Republicans are deliberately seeking to hurt New Hampshire’s people, businesses and economy as they try to score political points against Governor Hassan,” said New Hampshire Democratic Party Chair Ray Buckley. “It’s no surprise that the Republican legislature’s approval is under water for the first time since 2012 considering that Republicans are now openly admitting that they are trying to harm the state’s economy for their own political gain.”

Granite Staters Speak Out In Support Of Hassan And Budget Veto

Businesses, Advocates And Elected Officials Stand With Governor Hassan As She Fights For A Fiscally Responsible Budget That Protects Economic Priorities

Tom Strickland, owner of Sequoya Technologies Group in Peterborough, wrote in an op-ed, “My business is larger than 93 percent of the businesses in New Hampshire and these tax cuts will only save me $150 per year. That’s not enough for me to hire workers, buy equipment, or expand… What these tax cuts WILL do is result in even deeper cuts in critical state programs. The needs don’t go away when the program funding does. Those needs just shift to the community and that costs us all. Please keep my tax cut. I just can’t afford it.”

In a joint op-ed, Katie Robert, president of the New Hampshire Public Health Association and Kim Mohan, executive director of the New England Rural Health Roundtable, wrote, “The priorities embraced by the 2016-17 budgets, recently passed by the New Hampshire House and Senate, seem notably inconsistent with the needs of the state from a public health and public policy perspective… While these budget priorities are disconnected with the needs of the state overall, they would be particularly detrimental to the rural communities of our state, which make up 47 percent of the state’s population and cover 90 percent of its area.” 

In an editorial on the Supreme Court’s decision upholding access to affordable health coverage, the Concord Monitor wrote, “The New Hampshire Legislature, in particular, should see the writing on the wall and reauthorize the state’s [Medicaid expansion] program without delay.” 

Tym Rourke, chairman of the Governor’s Commission on Alcohol and Other Drug Abuse Prevention, Intervention and Treatment, told the Concord Monitor, “Reauthorization [of Medicaid expansion] has a big impact on treatment availability.”

In a joint op-ed, Senator Andrew Hosmer and Rep. Cindy Rosenwald wrote, “We stand with Governor Hassan in her decision to veto the fiscally irresponsible and unbalanced Republican budget, which we can only describe as a trail of false promises. You may have heard Republicans claim that their budget increases funding for critical priorities like substance abuse treatment, mental health services, and our seniors. But there’s one very big problem. Republicans’ fiscally irresponsible budget isn’t actually balanced, placing every single one of those priorities — and more — at risk.”

Rep. Timothy Smith wrote in an op-ed, “This year, the Senate started by considering tens of millions of dollars in new tax cuts for businesses with its very first bills – but no one has really looked at the long-term consequences of these cuts.”

 

See below for a roundup of additional coverage:  

From the Nashua Telegraph:

… Hassan made good on her threat and vetoed the proposed two-year budget, saying the tax cuts would blow a $90 million hole in future years in exchange for giveaways to big corporations.

“When I made this decision, which I didn’t do lightly, what I really stepped back to think about was the progress we’ve made over the last two years and the progress we need to continue to make so that we are a competitive 21st century economy – not just in this two-year cycle, but in all the cycles to come,” she said Thursday during an interview with The Telegraph editorial board.

… Hassan criticized the Republican budget for unpaid-for tax giveaways to mostly out-of-state corporations at the expense of other economic priorities such as higher education and public safety.

Her administration said the budget would not provide year-to-year increase to the university system and leaves New Hampshire vulnerable to losing young people looking at high price tags at in-state colleges. She also blasted the budget for failing to adequately fund substance abuse prevention and diverting infrastructure funds intended for road and bridge repairs.

Hassan said she is not against corporate tax reductions when done properly, but said Republican budget writers raided all the wrong funding sources to make them a reality.

“Philosophically I’m not opposed to doing it, but we do have to be able to pay for the very things that businesses all around the state tell me are their priorities,” she said.

Rep. Cindy Rosenwald, a Nashua Democrat and party leader in the House, said there is general agreement on spending priorities and she shares the governor’s concern about the unpaid-for business tax cuts.

“They would cost $23 million in this budget and $90 million in future budgets. The evidence that such tax cuts would drive higher economic growth just isn’t there,” Rosenwald said. “States like Kansas and Ohio have tried without success, and our own experience several years ago with a reduction in the tobacco tax rate also failed.” [Full story]

From the Associated Press:

Hassan said the budget would not provide any year-to-year increase to the university system, still funded below 2010 levels, or adequately fund substance abuse prevention. She said it also would force the Sununu Youth Services Center to cut a quarter of its budget; omit a modest cost-of-living increase for employees; divert funds intended for road and bridge repairs and underfund snow plowing and removal. [Full story]

From the Union Leader:

“I have vetoed the budget passed by the legislature because it is unbalanced, makes false promises about what it funds, and gives unpaid-for tax giveaways to big corporations, many based out-of-state, at the expense of critical economic priorities, including higher education, health care, public safety and transportation,” Hassan said in her veto message. “The long-term impact of these unpaid-for corporate tax cuts will create a more than $90 million hole in future budgets, further eroding our ability to encourage economic growth.” [Full story]

From NHPR:

Hassan said she hopes negotiations will start immediately. “I urge the legislators to meet with me as soon as possible so we can begin discussions on how we can build the kind of budget that is critical to our economic future,” she said Thursday at the State House. [Full story]

NH Senate Cuts Taxes For Former Governor Benson’s Company 

CONCORD – Governor Maggie Hassan issued the following statement after the Senate today voted in favor of an amendment to House Bill 550, relative to administration of the tobacco tax and relative to the sale or exchange of an interest in a business organization under the business profits tax:

“Planet Fitness is a valued New Hampshire company, and the Granite State has a great deal to offer as its corporate headquarters, including a low-tax environment without a sales or an income tax, a highly skilled workforce and a small, responsive state government. While we want to do everything that we can to keep the Planet Fitness corporate headquarters and its high-quality jobs here in New Hampshire, we cannot hastily and without full transparency make drastic changes to our tax laws due to a last-minute request from one company without a deeper analysis of the fairness to other tax-paying businesses in the Granite State and the impact to the state’s budget.

“This proposal was brought forward at the very last second of the legislative session without an adequate public process and its costs are not paid for in the Senate budget. At the same time, the Senate budget includes other large business tax cuts that will create a hole in this budget and budgets well into the future. We must analyze the creation of this tax loophole with the same scrutiny as any other tax law changes of this magnitude would be, and have an honest and transparent discussion about the priorities we would choose not to fund in order to pay for each of these tax law changes.”

Senator Dan Feltes Comments on Passage of Special Tax Break

following the passage of HB 550 along a party line 14-10 vote, Sen. Dan Feltes, member of the Senate Ways and Means Committee released the following statement:

“Carving out tax breaks for a single business at the last minute with no transparency is not the way to re-write tax law and can lead to harmful, unintended consequences for the people of New Hampshire,” said Sen. Dan Feltes. “This tax break, which was only brought up at the last minute by former Governor Craig Benson for a business that he serves on the board for, has not had a full vetting and is being rushed through the legislative process. We shouldn’t be opening loopholes for Governor Benson, we should be closing loopholes that disproportionately benefit the wealth and big corporations at the expense of the middle class, small businesses, and property taxpayers.”

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