Americans for Prosperity Calls Tax and Fee Hikes in Governor’s Budget Counterproductive to Job Creation and Economic Growth
MANCHESTER – Americans for Prosperity – New Hampshire (AFP-NH) today called the tax and fee increases included in Governor Hassan’s recently released budget counterproductive to job creation and economic growth. The “trailer bill” – which includes the changes in statutory law to implement the figures in the budget – was ultimately released last week, over two weeks after the Governor’s budget address, and includes 10 new tax and fee increases.
“We should be looking for ways to reduce the burden on the backs of small businesses, the backbone of our state’s economy,” said Greg Moore, AFP-NH State Director.
“Unfortunately, many of the tax increases in the budget directly impact the job creators in New Hampshire. The last thing we need is to add to the weight of some of the highest business taxes in the nation. We hope the legislature reverses this economically destructive course and puts the focus back on economic growth and job creation.”
AFP-NH pointed out that while the Governor’s budget includes a number of business tax increases, it did not include language to collect the $80 million in revenue the Governor included in her budget from a casino license fee, to allow gambling that is currently illegal under New Hampshire state law.
“While this budget took the time to stick it to the small businesses of New Hampshire, it didn’t bother to explain how the state would collect $80 million in activities that are currently illegal,” added Moore. “Clearly, this was not a well-thought-out solution to getting the state back to work. We recommend that the legislature start from scratch to look for ways to help our employers gain the confidence to hire new workers and add new jobs here. We need a better plan to help the over 43,000 unemployed workers across the Granite State find jobs and get busy moving our economy forward.”
Tax/Fee increases in Governor’s proposed budget:
1) [HB 2 – Section 27] Increased Fishing License Fees – Increase of 50% of all saltwater fishing fees, hikes range from $5 to $50.
2) [HB 2 – Section 30] Delaying Business Profits Tax Loss Carryforward – Retroactively delays BPT loss carryforward expansion to $10 million. Law took effect on Jan 1, 2013, pushed back to Jan 1, 2014.
3) [HB 2 – Section 106] Elimination of Education Tax Credit – Eliminates the education tax credit against the Business Profits Tax.
4) [HB 2 – Section 119] Fees Established for Mechanical Business Entities – New fees implemented for plumbing and fuel gas fitting companies.
5) [HB 2 –Section 120] New Fee-Making Authority to Fire Control Board – Board has new authority to create fees for Certified Water Treatment Technicians (new license).
6) [HB 2 – Section 130] Delaying BET Exemption Expansion/Indexing for Inflation – Retroactively delaying expansion and indexing for inflation of BET exemption. Law was in place for 2013 tax year that started on January 1, 2013. Would not take effect until 2015 tax year.
7) [HB 2 – Section 131] Increasing Tobacco Tax on Cigarettes – Raises tax on packs of cigarettes by $0.30/pack.
8) [HB 2 – Section 132] Increasing Tobacco Tax on other tobacco products – Changes tax methodology on other tobacco products from 48% of wholesale prices to a free floating percentage equal to the wholesale tax on cigarettes. (Expected to be 53%)
9) [HB 2 – Section 136] Delaying the Carryforward Period of Business Enterprise Tax Credits to Business Profits Tax – Delays the increasing of BET credits toward the BPT from 5 to 10 years from 2014 to 2015.
10) [HB 2 – Section 156] New Bank Examination Fees – Fees to replace existing methodology of charging pooled costs to banks to pay for the cost of regulating the industry.