New Hampshire Senate budget writers have voted along party lines to cut business taxes starting in 2017.
Currently the state’s Business Profit Tax (BPT) stands at 8.5 % and the Business Enterprise Tax (BET) at .75 %. Together the two taxes make up the largest source of state revenues.
Under this measure those would drop every year until 2019 when the BPT would be 7.9 % and the BET would be .675 %. These cuts were originally intended to take effect starting in 2016.
Senate President Chuck Morse says the cuts would result in a loss of $14 million in the next two-year budget, which Morse says will balance out as more businesses come to the state.
“I think it is what is going to drive the economy to have more revenue in the next budget and we are sending the message that New Hampshire is open for business,” told the Senate Finance Committee on Tuesday.
But Democrats argue these cuts will result in revenue losses -- adding that its not high business taxes but high energy costs that are driving businesses away.
The Finance Committee also voted to increase the research and development tax credit for businesses by $5 million starting in 2017.