NH lawmakers weigh cutting business enterprise tax

CREMATIONS.COM OR CALL (603) 524-1425. WELCOME BACK TO CLOSE UP. WELL, THERE IS A NEW INCOME TAX IDEA BEING KICKED AROUND. IN SOME WAYS, THAT DEBATE WILL REMAIN HYPOTHETICAL UNTIL SOMEONE ACTUALLY FILES A BILL. ONE PIECE OF TAX LEGISLATION THAT IS VERY REAL AND HAS ALREADY CLEARED THE HOUSE OF REPRESENTATIVES IS HB 155. IT WOULD REDUCE THE BUSINESS ENTERPRISE TAX FROM 0.55% TO 0.50%. THAT MAY NOT SOUND LIKE A LOT, BUT IT TRANSLATES TO MILLIONS OF DOLLARS IN REVENUE. HERE THIS MORNING TO DISCUSS OUR REPRESENTATIVE, JOE SWEENEY, A REPUBLICAN FROM SALEM, AND SENATOR DONOVAN FENTON, A DEMOCRAT FROM KEENE. GENTLEMEN, THANKS FOR BEING HERE. THANKS FOR HAVING US. THANKS FOR HAVING US, ADAM. SO, REPRESENTATIVE SWEENEY, THIS IS YOUR BILL. EXPLAIN FROM YOUR PERSPECTIVE WHY THIS IS A GOOD IDEA. LOOK, ADAM, I APPRECIATE THE OPPORTUNITY TO TALK ABOUT THIS LEGISLATION. REPUBLICANS HAVE BEEN COMMITTED OVER THE LAST DECADE TO REDUCE THE BARRIERS AND THE BURDENS THAT THE BUSINESS COMMUNITY FACES IN THE STATE OF NEW HAMPSHIRE, ESPECIALLY WHEN COMPARED TO OUR NEIGHBORING STATES IN THE NORTHEAST. WE HAVE SYSTEMATICALLY LOWERED OUR BUSINESS TAX RATES OVER THE LAST TEN YEARS. AND WHAT WE’VE SEEN IS A GREAT INCREASE IN THE REVENUES. IT’S MORE THAN DOUBLED OVER THE LAST TEN YEARS, AND ACTUAL DOLLARS RAISED INTO THE STATE COFFERS VIA OUR BUSINESS TAXES, AS WELL AS THE EMPLOYMENT NUMBERS AND THE BUSINESS EXPANSIONS THAT WE’VE SEEN AS A RESULT OF IT, WE’VE MADE IT PRETTY CLEAR THAT WHEN WE’RE LOWERING TAXES, WE’RE WE’RE SENDING THE SIGNAL TO THE BUSINESS COMMUNITY THAT NEW HAMPSHIRE IS THE STATE THAT YOU WANT TO INVEST IN, THAT YOU WANT TO BUILD YOUR BUSINESS IN. AND WE’RE GOING TO CONTINUE FINDING EVERY AVENUE WE CAN TO FURTHER REDUCE THOSE BURDENS, FURTHER LOWER THOSE TAXES ON EMPLOYERS TO MAKE NEW HAMPSHIRE THE BEST STATE TO WORK IN THE COUNTRY. WE’RE ALREADY BECOME BECAUSE OF THIS LEADERSHIP THAT WE’VE HAD OVER THE LAST DECADE, THE BEST STATE TO LIVE IN IN SO MANY DIFFERENT METRICS. WE’RE GOING TO CONTINUE FIGHTING FOR THAT AND CONTINUE MAKING NEW HAMPSHIRE THE BEST PLACE TO OPERATE A BUSINESS AND TO INVEST IN THIS COUNTRY. AND SENATOR FENTON, FROM YOUR PERSPECTIVE, WHY IS THIS A BAD IDEA? WELL, I WANT TO THANK YOU FOR HAVING ME. AND I HAVE A LITTLE DIFFERENT PERSPECTIVE THAN THE REPRESENTATIVE HERE. YOU KNOW, I RUN A BUSINESS HERE IN NEW HAMPSHIRE. I HAVE 175 EMPLOYEES. AND WHEN I’M TALKING TO MY EMPLOYEES, I’M TRYING TO ATTRACT A WORKFORCE HERE. THEY CARE ABOUT WHAT THE HOUSING SITUATION LOOKS LIKE. THE CHILDCARE SITUATION LOOKS LIKE. DO WE HAVE STRONG SCHOOLS? THEY’RE NOT ASKING IF I’M SAVING ROUGHLY $28 A MONTH ON MY BUSINESS ENTERPRISE TAX. AND THAT’S WHAT THIS BILL WOULD TRANSLATE TO $28 A MONTH FOR SMALL BUSINESSES, WITH ABOUT 150,000 SMALL BUSINESSES HERE IN NEW HAMPSHIRE. AND THEY MAKE UP ROUGHLY 99% OF SMALL BUSINESSES. SO WHAT THIS TAX BREAK ACTUALLY GOES TO IS THE CORPORATE TAX BREAK. AND IT’S NOT GOING TO TRICKLE DOWN TO THE WORKING FAMILIES. IT’S ACTUALLY A BURDEN ON THEM AND IT’S GOING TO RAISE THEIR PROPERTY TAXES. AND WE’RE TALKING ABOUT A TIME WHEN GROCERY PRICES ARE THROUGH THE ROOF. HOUSING COSTS, CHILDCARE. THAT’S WHAT WE SHOULD BE FOCUSING ON, NOT TAX, NOT TAX. CORPORATE GIVEAWAYS. REPRESENTATIVE. HOW DO YOU RESPOND TO THAT PROPERTY TAX ARGUMENT? WE HEAR IT ALL THE TIME FROM DEMOCRATS THAT ANY TIME WE CUT TAXES AND CONQUERED, IT’S SOMEHOW GOING TO LEAD TO PROPERTY TAX HIKES LOCALLY. IT’S JUST NOT TRUE. WITH THIS RECORD REVENUE THAT WE’VE GENERATED VIA OUR LOWER BUSINESS TAXES, WE HAVE SENT MORE MONEY TO TOWNS, CITIES AND SCHOOLS IN NEW HAMPSHIRE THAN EVER BEFORE IN CONSECUTIVE BUDGETS. WE KEEP BUILDING ON THAT. WE KEEP SENDING MORE MONEY TO THESE MUNICIPALITIES AND TO THE SCHOOL DISTRICTS TO SPEND. LOCAL VOTERS THEN DECIDE TO SPEND MORE MONEY OVER AND ABOVE WHAT THE STATE IS SPENDING, AND INCREASED MEALS AND ROOMS DISTRIBUTION, AND AN INCREASED AID FOR STUDENTS AND SCHOOLS. SO THERE’S, THERE’S THIS FANTASY THAT WE ARGUE WITH THAT CUTTING TAXES IN NEW HAMPSHIRE SOMEHOW INCREASES LOCAL PROPERTY TAXES. IT’S THE LOCAL DECISIONS THAT THAT DRIVE THAT THERE. SORRY, SENATOR, YOUR RESPONSE ON THIS, THE LATE STATE VERSUS LOCAL, YOU KNOW, IT’S NOT THE LOCAL DECISIONS THAT RAISE THAT PROPERTY TAX. IT’S THE EXACT WHAT MONEY WE’RE ACTUALLY GETTING FROM THE STATE TO HELP OUR MUNICIPALITIES. AND REPRESENTATIVE TALKED ABOUT WE’VE BEEN CUTTING THESE TAXES FOR A DECADE, BUT WE’RE NOT SEEING THESE BUSINESSES COME TO NEW HAMPSHIRE. IF THAT WERE THE CASE FOR THE PAST DECADE, WE SHOULD BE SEEING THOUSANDS AND THOUSANDS OF BUSINESSES FLOCKING TO NEW HAMPSHIRE. AND WE’RE JUST NOT SEEING THAT. YOU KNOW, I KNOW THE REPRESENTATIVE SITS ON THE BOARD OF MASSACHUSETTS. SO DOES MY DISTRICT. MY DISTRICT ALSO SITS ON VERMONT. I’M NOT SEEING AN INFLUX OF THESE BUSINESSES COMING OVER HERE BECAUSE WE’RE LOWERING CORPORATE TAX CUTS. AND IN FACT, IT’S JUST RAISING TAXES FOR WORKING FAMILIES. THE AVERAGE BUSINESS SAVES AROUND $500 A MONTH. IF THIS WERE TO PASS. I’M NOT INVESTING IN NEW EMPLOYEES. I’M NOT ATTRACTING A WORKFORCE BY SAVING $500. IN FACT, I NEED PEOPLE TO INVEST IN HOUSING AND ROADS AND THINGS LIKE THAT TO ACTUALLY ATTRACT THE WORKFORCE. HERE IN NEW HAMPSHIRE. WILL YOU HEAR FROM MY GOOD FRIEND, SENATOR FENTON? IS THE MASSACHUSETTS MODEL THAT HAS BEEN TRIED AND TRUE. THEY WANT TO RAISE TAXES ON BUSINESSES TO INCREASE SOCIAL WELFARE SPENDING IN MASSACHUSETTS. THAT’S RESULTED IN A 4.8% UNEMPLOYMENT RATE. NEW HAMPSHIRE, WE HAVE A 3.1% UNEMPLOYMENT RATE. THAT’S PROOF IN THE PUDDING THAT OUR POLICIES ARE WORKING. AND SENATOR, RESPECTIVELY. LAST YEAR, WE HAD SIX HEADQUARTERS FROM MASSACHUSETTS, MOVE FROM MASSACHUSETTS TOWNS AND COMMUNITIES INTO NEW HAMPSHIRE, INCLUDING THREE IN MY DISTRICT IN SALEM, RIGHT OVER THE BORDER. WE ARE ATTRACTING THOSE BUSINESSES COMING IN. IT WASN’T GOING TO BE AN IMMEDIATE REACTION BASED ON THE FIRST CUTS WE MADE TEN YEARS AGO, BUT WE’VE MADE IT CLEAR IN THE STATE OF NEW HAMPSHIRE THAT WE’RE PRO-BUSINESS, WE’RE PRO-DEVELOPMENT, AND WE’RE TRYING TO ATTRACT THESE PEOPLE OVER HERE. MAURA HEALEY IN MASSACHUSETTS IS BRAGGING ABOUT SAVING ONE BUSINESS THAT MOVED FROM ONE TOWN TO ANOTHER IN MASSACHUSETTS DUE TO THEIR SUBSIDIES THAT DIDN’T MOVE TO NEW HAMPSHIRE INSTEAD OF IT. AT THE SAME TIME, WE GAINED THOSE SIX HEADQUARTERS. WE’RE GOING TO KEEP RECRUITING MORE AND TAKING MORE IN, ESPECIALLY AS THE STATES DIVERGE INTO WHAT WE’RE WHAT WE’RE SIGNALIZING TO THE PRIVATE MARKET AS TO WHAT’S IMPORTANT. AND, SENATOR, HOW DO YOU RESPOND TO THAT CONTENTION THAT THIS IS HIGHER TAXES WOULD BE SORT OF AGAINST THE CULTURE OF THE STATE? SO WHERE DO WE MAKE UP THAT $27 MILLION GAP. BECAUSE THAT’S WHAT THIS BUDGET IS PROPOSING. IF YOU LOOK AT THE BILL IT’S $27 MILLION IN REVENUE. SO OVERNIGHT ARE WE GOING TO FLIP A SWITCH WHERE THAT $27 MILLION IS GOING TO ATTRACT ALL THESE BUSINESSES. THAT THE REPRESENTATIVE WAS MENTIONING. IT’S JUST NOT GOING TO HAPPEN. IT’S NOT BASED IN ECONOMICS. IT’S NOT BASED IN REALITY. I GOT TO GO BACK TO ME RUNNING MY SMALL BUSINESS. THIS IS NOT WHAT I’M ASKING FOR. AND IF YOU GO TO THE TESTIMONY OF THIS BILL, NOT A SINGLE BUSINESS CAME TO TESTIFY IN SUPPORT OF THIS BILL. NOT A SINGLE BUSINESS ORGANIZATION CAME TO TESTIFY IN SUPPORT OF THIS BILL, BECAUSE THIS IS NOT WHAT WE’RE ASKING FOR. WE’RE ASKING FOR, AGAIN, CHILDCARE, HOUSING, LOWER GROCERY PRICES. WE’RE SPENDING $1 BILLION A DAY RIGHT NOW IN A WAR. AND THE REPUBLICAN SOLUTION HERE IN NEW HAMPSHIRE IS $27 MILLION IN CORPORATE TAX CUTS WHEN PEOPLE CAN’T EVEN AFFORD THEIR GROCERIES OR EVEN AFFORD TO LIVE IN THEIR HOUSE, THAT’S NOT ACCEPTABLE IS THE IDEA THAT IF GOVERNMENT HAS TO SHRINK BECAUSE OF THIS, THAT’S ACCEPTABLE. WELL, I, I DISAGREE THAT GOVERNMENT IS GOING TO HAVE TO SHRINK. WE’VE CONTINUED TO CUT THESE TAXES, AND OUR REVENUES HAVE CONTINUED TO OUTPACE PROJECTIONS THAT WE DON’T HAVE TO HAVE THAT SORT OF SHRINKAGE THAT THE SENATOR IS REFERRING TO. AGAIN, WE’VE CUT THEM CONSISTENTLY FOR THE LAST TEN YEARS, AND OUR REVENUES HAVE DOUBLED IN TERMS OF GROSS AMOUNT TO THE STATE OF NEW HAMPSHIRE FROM THESE BUSINESS TAXES. SO THE IDEA THAT REDUCING THESE TAXES IS ACTUALLY LEADING TO REVENUE SHORTFALLS IS JUST NOT BASED IN REALITY. AND I KNOW PEOPLE HAVE TALKED ABOUT A SWEET SPOT. IS THE IDEA TO KEEP CUTTING, OR IS THERE A POINT AT WHICH YOU CAN’T CUT ANYMORE? IN NEW ENGLAND, THE STATE OF RHODE ISLAND CHARGES BUSINESSES 7% CORPORATE TAX. THEY OBVIOUSLY HAVE OTHER TAXES ON TOP OF THAT THAT THE CONSUMERS PAY WITH SALES TAXES AND INCOME TAXES. REPUBLICANS ARE GOING TO KEEP FIGHTING TO LOWER THE BURDEN THAT WE PLACE ON BUSINESSES, NOT JUST SO THAT WE CAN COMPETE WITH THE REST OF THE NORTHEAST, JUST SO THAT WE CAN COMPETE WITH THE REST OF THE NATION IN TERMS OF OF HAVING THE BEST BUSINESS ADVANTAGE THAT WE CAN. AND SENATOR FENTON, WHAT DO YOU SAY TO SOME IN YOUR PARTY WHO MAKE THE ARGUMENT THIS ISN’T JUST ABOUT BUSINESS TAXES. IF YOU WANT TO DO THE THINGS YOU’RE TALKING ABOUT THAT IT NEEDS TO BECOME A MORE DIVERSE TAX BASE. LIKE ANDREW ZELENSKYY SAYING, THERE NEEDS TO BE AN INCOME TAX. WE NEED TO LOWER PROPERTY TAXES. THAT’S WHAT WE REALLY NEED TO DO. WE NEED TO FOCUS ON REVENUE GENERATORS LIKE THE TAX AMNESTY PROGRAM THAT WE JUST COLLECTED $100 MILLION IN CORPORATE TAXES. CORPORATIONS WEREN’T ACTUALLY PAYING THESE TAXES. AND WE HAD $100 MILLION COME IN THAT WE WOULD NOT HAVE COLLECTED. THAT’S THE REVENUE WE NEED TO FOCUS ON IS ACTUALLY COLLECTING IT. AND HOW DO WE GET THAT INVESTING WHEN WE CUT $27 MILLION OUT OF OUR BUDGET. WE’RE TALKING ROADS. WE’RE TALKING SCHOOLS. WE’RE TALKING LIVES HERE. THAT DOESN’T MAKE SENSE. AND I GOT TO BRING IT BACK TO ME RUNNING A BUSINESS. I GOT 175 EMPLOYEES AT HOME. THEY’RE NOT ASKING FOR THIS. SMALL BUSINESSES ARE NOT ASKING FROM THIS. IT’S COMING DIRECTLY FROM A BUSINESS OWNER. WE NEED HELP INVESTING IN A WORKFORCE. HOW DO WE ATTRACT THAT WORKFORCE HERE TO NEW HAMPSHIRE? WHEN I’M TRYING TO GET AN EMPLOYEE TO MOVE HERE FROM MASSACHUSETTS, THEY’RE NOT ASKING ME IF I’M SAVING $20 A DAY ON MY BUSINESS ENTERPRISE TAX. THEY’RE ASKING ME, WHAT ARE THE ROADS LIKE IN NEW HAMPSHIRE? WHAT’S THE HOUSING SITUATION LIKE? ARE GROCERIES EXPENSIVE? IS GAS EXPENSIVE? THOSE ARE THE QUESTIONS. AND THOSE ARE THE THINGS WE NEED TO ADDRESS. SHOULD THERE BE A BROAD BASED TAX TO ADDRESS THOSE? I’M NOT ADVOCATING FOR A BROAD BASED TAX. I’M ADVOCATING FOR. LET’S FOCUS ON THE REVENUES WE HAVE CURRENTLY. LET’S FOCUS ON THAT TAX AMNESTY PROGRAM, WHERE WE’RE GOING TO MISS $100 MILLION $100 MILLION GOES A LONG WAY HERE IN NEW HAMPSHIRE TO A LOT OF PROGRAMS THAT WE HAVE. ALL RIGHT GENTLEMEN WE’VE HIT OUR TIME. UNFORTUNATELY REPRESENTATIVE AND SENATOR AND THANKS FOR BEING HERE. I’M SURE THIS IS THE LOOKING AT THE PREVIEW OF THE 2044 U.S. SENATE RACE, PROBABLY HERE. SO WE’LL SEE YOU GUYS A FEW YEARS DOWN THE ROAD BACK DOING THIS AGAIN. THANK YOU. ALL RIGHT. WE’LL BE RIGHT