Tax cuts are a priority for the new Republican majority in the State House this year. Bills to reduce or eliminate several state taxes were before a committee of the New Hampshire House Thursday.
One bill would phase out the state’s interest and dividends tax, which now brings in north of $100 million a year. Another measure would drop the rates of two major business taxes.
House Speaker Sherman Packard told the Ways and Means Committee that cutting rates on businesses will benefit the economy.
“We believe it’s an absolute positive move forward that will bring more businesses to the state, help businesses in the state stay in business and help them expand once we get out of this pandemic,” Packard said.
Democrats say cutting business taxes will lead to higher local property taxes.
Collections on the major business taxes plunged by close to $100 million when the coronavirus pandemic hit last year, but since July they’ve been trending above forecast.
Gov. Chris Sununu is expected to propose cutting the rates of several taxes when he presents his state budget next month.