Home » News » Currently Reading:

National State-Tax Expert Michael Mazerov Outlines Why Business Tax Cuts Will Not Produce Economic Growth for New Hampshire

FOR IMMEDIATE RELEASE
June 23, 2015

 

National State-Tax Expert Michael Mazerov Outlines Why Business Tax Cuts
Will Not Produce Economic Growth for New Hampshire

 

Concord, NH – Nearly 50 New Hampshire legislators gathered in Concord today to learn about the impact business tax cuts have had in other states and why such tax cuts are ineffective as a strategy to foster economic growth. Hosted by the New Hampshire Fiscal Policy Institute, the event featured nationally-recognized state tax policy expert Michael Mazerov, who outlined research regarding the relationship between state taxes and economic performance.

“Preserving high-quality state and local services needed by businesses, especially education and infrastructure, should be the primary economic growth strategy for states – including New Hampshire – to pursue,” said Mazerov.

Mazerov’s presentation examined the relationship between taxes and economic growth, explored the impact business tax cuts have had in other states, and discussed the effect tax cuts can have on states’ ability to invest in education, infrastructure, and other areas vital to a vibrant economy.

“What really explains most of the relative rate of job growth among states is their ability to nurture and ensure the survival of the small number of start-ups that develop an innovative technology, product or business model,” said Mazerov.

The negative effect of tax cuts on economic growth is well illustrated by the state of Ohio. Between 2005 and 2015 Ohio implemented numerous tax cuts intended to promote economic growth, yet during this ten-year period the state’s employment rate experienced no net growth while employment increased by 5.8 percent nationally.

“The business tax cuts contained in the Committee of Conference budget would severely constrain New Hampshire’s ability to make critical investments,” said Jeff McLynch, executive director of the New Hampshire Fiscal Policy Institute. “Phasing such tax reductions in over time simply puts difficult tradeoffs onto future legislatures, with no plan for accommodating the loss in revenue.”

Michael Mazerov is a senior fellow with the Center on Budget and Policy Priorities, based in Washington DC, where he focuses on state tax and budget policy. Prior to joining CBPP, Mazerov served as director of policy research for the Multistate Tax Commission.

 

-30-

CONTACT:

AnnMarie French
603-856-8337, x2

Connect with NHFPI

Common Cents Blog

Legislature Finishes Historic Session, Sends Omnibus Bills to Governor’s Desk

10 Jul 2020

tree with coins

With an abbreviated timeline that prevented further deliberation, the Legislature combined legislation left on the agenda since March and sent both single-issue and omnibus bills to Governor Sununu. The Senate compiled both bills originating in the Senate and the House into larger bill packages, and the House’s schedule only permitted concurrence or rejection of bills relayed to it by the Senate, rather than an amendment process through Committees of Conference. The result was a series of bills covering a wide variety of topics, including future COVID-19 vaccines, expanded dental benefits for Medicaid recipients, raising the minimum wage, unemployment compensation for COVID-19-related reasons, paid family and medical leave, protections for renters behind on payments during the pandemic, telehealth services, New Hampshire Employment Security’s computer systems, and importation of prescription drugs from Canada.

NHFPI Seventh Annual Conference

NHFPI Annual Conference