Home » Common Cents » Recent Articles:

Early Interest and Dividends Tax Payments Boost Surplus

January 5, 2018 Common Cents
tree with coins

December revenues closed out the first half of State fiscal year 2018 with a sizable increase in the surplus, but the boost’s source suggests the result might be lower receipts in the next half of the year. Revenue sources for the General and Education Trust Funds collected $7.7 million (3.3 percent) more than planned in December, which was $14.4 million (6.4 percent) more than last December and resulted in a total unrestricted revenue surplus of $18.7 million (2.0 percent) above plan for the year. However, $7.3 million of the $7.7 million surplus from December came from a single source: the Interest and Dividends Tax.

... Continue Reading

Congress May Reduce Funding to Key Programs Following Tax Changes

December 21, 2017 Common Cents
tree with coins

The Tax Cuts and Jobs Act passed by the United States Congress on December 20 will likely lead to an increase in the federal debt, and Congress may next seek to make changes in expenditures to reduce the impact on deficits. The official estimate from the Joint Committee on Taxation (JCT) shows the federal debt will increase by $1.46 trillion from 2018 through 2027. A macroeconomic analysis from the JCT of the U.S. House of Representative’s similar version of the bill shows that, even with potential higher levels of economic growth following reductions in individual and corporate tax rates and other changes, the debt would still increase by $1.01 trillion in the first ten years. Independent estimates also show the tax changes will very likely add to annual deficits.

... Continue Reading

November Revenues Double Surplus, Keeping Receipts Just Above Plan

December 13, 2017 Common Cents
tree with coins

Lawmakers seeking to pass bills that require spending will be watching the surplus carefully next session. Any bills that call for spending money during the 2018 Legislative Session require either more revenue to come in than expected under the current State Budget or a new revenue source to be established. November’s tax revenue receipts gave legislators reason to be optimistic, but the surplus may disappear if receipts from subsequent months fall lower than planned. December is a key month for business tax revenues, for example, and a small percentage change in collections may erase all of November’s gains or add to them. State policymakers may also face challenges from unexpected needs or Keno revenue shortfalls, which would hamper the State’s ability to pay its obligations to subsidize full-day kindergarten.

... Continue Reading

Connect with NHFPI

Common Cents Blog

Unsettled Business Tax Revenues Push Surplus Upward, Offer Limited Insight for the Future

7 Dec 2018

tree with coins

The fortunes of State revenues continue to rise and fall with New Hampshire’s two primary business taxes, which provided positive signs for near-term revenue but have not shown these levels are sustainable. While the two business taxes remained healthy, other revenue sources were relatively flat overall, leaving the State with a revenue surplus entirely dependent on the two business taxes. The lack of growth in other revenue sources combined with the uncertainty around business taxes creates an environment in which it will be very difficult to accurately project revenues for the new State Budget biennium.