The House Ways & Means Committee held a public hearing on HB 1422, a bill to add a protective trigger to the next round of state business tax cuts. The goal of the trigger is to minimize the state’s risk of revenue shortfalls which would reduce funding for the critical needs of NH citizens and businesses.
A trigger was used for the 2016-2017 state budget. The trigger target was met and the business tax cuts occurred. So why then are we not using a trigger mechanism in this budget?
HB 1422 adds the trigger mechanism that was proposed by House Republicans to the Senate in the 2018-2019 budget committee of conference but refused. HB 1422 would ensure that tax cuts scheduled for future years would only happen if revenues meet the growth projections needed for this term’s budget plan.
Representative Richard Ames, sponsor of HB 1422, stated, “If economic growth fails to materialize, HB 1422 will at least put a brake on our losses and give us space to respond in a different and better way.”
“We should heed the example of Kansas, and the safeguards in House Bill 1422 are sound and prudent fiscal management — the New Hampshire way,” stated Senator Lou D’Allesandro and Senator Dan Feltes in a joint statement.
Representative Joelle Martin added, “As a Ways & Means committee, it is our responsibility to make smart fiscal policy decisions for the state and minimize the risk of potential revenue shortfalls. Adding a trigger to future business tax cuts would protect Granite Staters from potential unintended consequences, including cuts in critical services to businesses and communities as well as tax increases.”