The NH Business Profit Tax (“If you made money, we demand some vigorish” tax) and the NH Business Enterprise Tax (“Simply because you want to do business in NH” tax) will no longer be automatically heading upward.
Related: The US Economy Recovered 4.8 Million Jobs in June
A trigger that was put into the tax code that said that if State tax revenues fell far enough, businesses would be on the hook for making up the difference. After all, NH Democrats said, “Government over People” – WE must be made whole (the rest of you peons, not so much) Reformatted, emphasis mine:
CONCORD — Thanks in part to a healthy real estate market, business owners appear likely to avoid an increase in their two state taxes. The state’s financial year ended last week, with state taxes and fees unofficially coming in at 5.4% or $143 million less than forecast. A 6% drop would mean an automatic increase in both the state’s business profits and business enterprise tax rates this January.
…“While it’s still too soon to say we’re completely out of the woods, businesses across New Hampshire can start to breathe a sigh of relief that they won’t get hit with a big tax increase while they are still pulling themselves up off the mat from the impact of the pandemic,” said Greg Moore, state director of Americans for Prosperity. “It’s particularly true for small businesses, who would have taken the biggest hit — a 12.5% hike in the BET.” Andrew Cline, president of the fiscally conservative Josiah Bartlett Center for Public Policy, criticized the Legislature for continuing to support these tax triggers. “Legislators should have taken this tax-hike trigger off the books when employers asked,” Cline said in a statement. “Instead, legislators gambled with the livelihoods of many small business owners and their employees. Though employers seem to have gotten lucky, they should’ve been able to rely on their legislators, not Lady Luck.”
The business enterprise tax is a tax on a firm’s payroll, dividends and interest, which is currently .6%. If the trigger kicked in, it would rise to .675%. The tax on corporate profits is 7.7%, which would increase to 7.9% with the trigger.
You may be looking at those last numbers going “What the heck, those percentages are so small!”. Now ask yourself “Have I ever signed the FRONT of a paycheck instead of just the back?” I have and each and every time I looked at the amount of taxes going out, I kept on thinking “I could have hired 2 or 3 MORE teachers and given them a job at decent wages.” Every time taxes go up, it means a biz owner can’t do something to expand their business – either creating a new process, service, or product. Or hire more staff which helps provide for their families (and no additional dole checks going out).
But Democrats have got to “Government” so they always insist that Government comes first.
Not THIS time! – Probably.
(H/T: Union Leader via Greg Moore)