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Organizations and Small Businesses Call on Governor to Reject Business Tax Cuts

April 14, 2015 News

NEWS RELEASE
April 14, 2015

 

Organizations and Small Businesses Call on Governor to Reject Business Tax Cuts, Voice Concern for State Budget    

More than 40 organizations, including 18 small businesses, sign letter urging Governor to reject business tax cuts

 

Concord, NH – Representatives from New Hampshire’s small business, nonprofit, education and faith communities gathered in Concord today to speak against proposed business tax cuts. More than 40 organizations, including 18 small businesses, have signed a letter urging Governor Hassan to reject business tax cuts in upcoming or future budgets; the letter was delivered to the Governor’s office on Tuesday morning.

“The business tax cuts passed by the Senate earlier this year would drain nearly $28 million out of the upcoming state budget and reduce revenue by more $80 million each biennium once fully implemented, making it all but impossible to restore funding for local aid, services for the developmentally disabled, the state’s public colleges and universities, or a variety of other areas vital to New Hampshire’s high quality of life,” said Jeff McLynch, executive director of the New Hampshire Fiscal Policy Institute.

At a press conference held at the Legislative Office Building, McLynch and representatives of several organizations and businesses who signed the letter to the Governor outlined concerns regarding the FY 2016-2017 state budget and proposals to cut business taxes at a time when the state cannot afford to fund critical needs.

“Forty-one thousand school-age children in our state come from homes where there is an uncertainty of having enough food for all household members because of insufficient income or other resources,” said Scott McGilvray, president of NEA-New Hampshire. “Business tax cuts would endanger the public services on which these students and their families rely, and shift the burden for paying for such services directly onto the backs of those who need them most but can least afford them.”

As the version of the budget passed by the New Hampshire House illustrates, the state lacks adequate resources to meet the needs of its citizens, maintain vital infrastructure, and build an economy that works for everyone. The tax cuts proposed by the Senate will drain millions of dollars out of this and future budgets and leave the state further behind. More details pertaining to the fiscal impact of the SB 1 and SB 2 tax cuts are attached.

“We know that substance misuse costs businesses more than $1 billion per year in lost worker productivity,” said Kate Frey, advocacy director for New Futures. “Can New Hampshire really afford costly business tax cuts at a time when revenues are already insufficient to meet critical needs such as substance abuse prevention treatment and recovery?”

Promoted as means to create jobs and spur economic growth in the state, proposed business tax cuts would benefit primarily large corporations, offering little benefit to most small businesses.

“I calculated how much these proposals would save my company when they are fully implemented and it came to less than $150 per year,” said Tom Strickland, president and co-founder of Sequoya Technologies Group, a small IT company with eight employees based in Peterborough, NH. “$150 out of a million dollar budget isn’t going to influence my business decisions. I won’t be hiring new employees or buying new equipment as a result of this tax cut.”

Strickland moved his family to New Hampshire 18 years ago to start a business and raise a family, attracted by the state’s high quality of life. Strickland encouraged lawmakers to invest in things that businesses need but cannot do for themselves, such as high-quality schools, well-maintained roads, and high-speed broadband internet.

Participants stressed that businesses and the state would be better served by investing business tax revenue in areas that benefit the state overall – a well-trained workforce, good schools and affordable higher education, safe infrastructure, and health and support services that increase employee productivity and reduce employer costs.

New Hampshire has enacted numerous business tax cuts since 2010. In its 2014 report, the New Hampshire Business Tax Study Commission concluded that business tax cuts were impractical at this time and ranked low on the list of business priorities.

The Reverend Jonathan Hopkins of Concordia Lutheran Church, president of the board of directors for the New Hampshire Council of Churches, closed the press conference with the following remarks: “It is good business to care about our entire community, and it is the right thing to do. To give tax breaks to businesses while cutting services desperately needed by the most vulnerable in our state would be morally wrong, and fiscally foolish. I hope all people of conscience will stand with us and say that we need a budget that makes sense for all of the citizens of this great state.”

The full text of the letter to Governor Hassan and complete list of signatories is attached.

 

The New Hampshire Fiscal Policy Institute is an independent, non-profit, non-partisan organization dedicated to exploring, developing, and promoting public policies that foster economic opportunity and prosperity for all New Hampshire residents, with an emphasis on low- and moderate-income families and individuals. Learn more at www.nhfpi.org.

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CONTACT:
AnnMarie French
603.856.8337 x2

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Common Cents Blog

House Finance Committee Finalizes Full Budget

28 Mar 2017

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