In an OpEd in the Union Leader, Grover Norquist, president of Americans for Tax Reform, applauded Gov. Chris Sununu and Republicans in the House and Senate for their commitment to making New Hampshire a true no income tax state.
New Hampshire often appears on the list of nine states that do not impose income taxes, but with an asterisk by its name due to the 5% tax it imposes on income earned from interest and dividends. In order to be considered a true no income tax state, New Hampshire must eliminate that I&D tax.
“While New Hampshire has remained a competitive state thanks to its overall low tax burden — it is one of nine states that do not tax wage income, one of five states without a statewide sales tax, and one of four states that also ban the collection of local sales taxes — it should not get complacent,” cautioned Norquist.
As people and jobs continue to move into no income tax states, more and more states are exploring ways to eliminate their income taxes. “This movement will only grow, and as more states begin eliminating their income taxes and joining the list of true no income tax states, the more the asterisk by New Hampshire’s name will become a problem,” explained Norquist.
Eliminating the I&D tax would be a huge win for New Hampshire. In addition to allowing New Hampshire to finally be considered a true no income tax state, eliminating the I&D tax would end a form of double taxation and provide much-needed tax relief to retirees living off of investments.
“Now is the time for New Hampshire to become a true no income tax state,” wrote Norquist. “Doing so would send a strong reminder to all about the Granite State’s longstanding commitment to low taxes, and ensure that New Hampshire remains competitive over the long term. Even as more states eliminate their income taxes.”
To read the full OpEd, click here.