Republicans just approved a budget that is a huge win for all New Hampshire taxpayers. It will make New Hampshire a true no income tax state, provide much-needed tax relief for businesses and consumers, and expand access to quality education.
“Governor Sununu, Speaker Packard, and Senate President Morse won a great victory today for all New Hampshire taxpayers,” said Grover Norquist, president of Americans for Tax Reform. “The tax on interest and dividends is now to be phased out in five years. This means the personal income tax is to be finally and completely abolished. Gone. Finished. Completely dead. The meals and rooms tax is reduced to make New Hampshire more competitive with Maine and Vermont.”
The Republican budget will cut taxes for retirees who live off investments while also making New Hampshire an even more attractive place to live, invest, and do business by phasing out the Interest & Dividend tax (I&D tax) over five years.
New Hampshire appears on the list of no income tax states because it does not tax wage income, but with an asterisk by its name due to the 5% tax it imposes on income earned from interest & dividends. While New Hampshire has been able to remain a competitive state thanks to its overall low tax burden, a growing movement of states are working to put their income taxes on the path to zero. Over time, as more states are added to the ‘no income tax’ list, the more the asterisk by New Hampshire’s name will become an issue.
Fortunately, the Republican budget addresses this problem by phasing out the I&D tax over five years. Once fully implemented, New Hampshire will finally be able to say that it is truly a no income tax state, ensuring that it remains competitive over the long term. Even when there are more no income tax states.
The Republican budget also reduces the Business Profits Tax (BPT) and the Business Enterprise Tax (BET), allowing small business across the state to invest more in new jobs and higher wages, and reduces the Meals and Rooms Tax, which will be particularly beneficial to New Hampshire’s tourism industry.
In addition to providing much-needed tax relief, the Republican budget expands access to quality education by establishing Education Freedom Accounts. This will give qualifying families the option use some of the tax dollars that would have been spent educating their children in a public school on private or parochial school tuition and fees instead. These families would also have the option to use that money to cover the costs associated with homeschooling.
Thanks to Governor Chris Sununu, Senate President Chuck Morse, House Speaker Sherman Packard, and Republicans in the legislature, every resident of the Granite State is a winner under this budget.
Education will improve, taxpayers will be able to keep more of their hard-earned money, and the Granite State will be an even more attractive place to open or expand a business and raise a family.