MANCHESTER – Americans for Prosperity – New Hampshire (AFP-NH) today pointed to a newly released report by the non-partisan Tax Foundation showing that New Hampshire ranks 6th nationally for having the lowest combined state and local tax rates, as a percentage of income (8.0% of NH residents’ income going for state and local taxes). However, AFP said that recent action by the state legislature jeopardizes the future for a low ranking.
“The decision by the state legislature to expand Medicaid under ObamaCare, coupled by the gas and diesel tax passed by the state Senate means that our ability to remain competitive in the future is in jeopardy,” said Greg Moore, AFP-NH State Director. “Medicaid expansion alone has the potential to blow a hole in the state budget that would devastate the New Hampshire Advantage and require a sales or income tax, and an increase in the gas tax makes the state less competitive in many different areas. It’s time for our legislature to get back to being the low tax haven in the Northeast, and not trying to play catch up to states like Massachusetts, Maine and Vermont.”
AFP-NH has consistently advocated for lowering the state’s business taxes, which are the third highest in terms of rates and second highest per capita in the nation.
“Blocking the business tax hikes that was proposed in the current budget by Governor Hassan and approved by the House was a major victory for our grassroots activists who know that New Hampshire needs to be a place to build and grow new companies and new jobs,” added Moore. While our overall tax structure is low, the legislature needs to stop passing tax hikes and focus on making our business taxes more competitive. That’s the way to add a springboard to the New Hampshire Advantage.”