NH REVENUES

Take Another Look At Business Tax Revenue

Dave Solomon of the Union Leader writes on Sunday July 17 that he received "a lot of feedback" on a recent column regarding the impact of lower business taxes on the state revenue.

In my opinion, today's piece tells a better tale about the impact of those cuts, whether the tax cut has improved NH revenues or the general growth of the economy is the reason for our revenue improvement.

State Sen. Dan Feltes, D-Concord says that the 2016 revenues that are so widely touted as proving the advantages of lower business taxes were based on business activity in 2015 and some of 2014 when the tax cuts were not in affect.

He goes on to say that the economy was taking off coming out of the recession and that the tax cuts of 2016 were not material to this improved revenue.

Economist Brian Gottlob of Dover says that state revenues have been strong over the past two years, but that business tax revenue was actually slightly lower in 2017 than in 2016.

He's correct. We studied these numbers in the House Ways and Means Committee and our group had lengthy conversations about the effect the new cuts may have on future revenues.

I've attached a link to Solomon's piece in the Press section below.