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Proposed Spending Cap Could Lock In Current Spending Cuts for a Decade

February 13, 2012 State Tax Policy

A proposal to rewrite the New Hampshire Constitution to cap the growth of state spending at the rate of inflation would create a new set of problems when it comes to developing a smart budget.

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Testimony before the Commission to Study Business Taxes

February 6, 2012 State Tax Policy
NH state quarters

The legislative Commission to Study Business Taxes met Monday, February 6, to receive public input on its draft report recommending changes to New Hampshire’s tax system. Taken together, the recommendations would mean a substantial revenue loss for the state. Had the recommendations been in place for the current biennium, they would have reduced state revenue by a conservative estimate of $100 million. This kind of revenue loss would likely require major cuts to public services, including infrastructure and education that are critical to attracting new businesses. NHFPI Executive Director Jeff McLynch testified that the proposals may hurt economic growth, not help.

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Testimony Regarding Education Tax Credits

January 23, 2012 Research, State Tax Policy

Proposed legislation to create a tax credit for businesses that contribute to private scholarship funds would be costly for state officials to implement and would divert scarce public resources to private interests. In particular, state aid to public schools would likely be cut even though there is no evidence students receiving subsidies to attend non-public schools do any better than their public school peers. NHFPI Executive Director Jeff McLynch urged the House Ways and Means committee to oppose these tax credits aimed at helping students attending private, religious or home schools.

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Declining Business Tax and Other Revenues Suggest Caution for State Budget

15 Aug 2019

tree with coins

As policymakers continue to consider State Budget options and choices during the ongoing continuing resolution, understanding State revenue trends remains critical to determining the State’s ability to pay for needed services and the policy choices that affect available resources. With State Fiscal Year 2019 completed and SFY 2020 underway, recent months of revenue collections have provided some additional insight into whether the State might expect more revenue in future years. Questions remain about the future of business tax receipts in particular, which have been very difficult to predict due to recent abnormal behavior following the federal tax overhaul; however, recent data suggest anticipated declines in receipts may limit revenue going forward.