BY: CCNH-LFDA Highlights
There is almost no chance of an income tax passing the New Hampshire Legislature this year, but Rep. Paul Henle still thinks representatives should debate the issue.
"New Hampshire has ceased to be a friendly place for businesses, and our tax system is a big reason why. Not only do businesses pay high taxes on their profits, but also on their payroll — whether they make money or not. And on top of that — high property taxes," Henle wrote in a recent editorial.
Henle is sponsoring a bill he calls the "New Hampshire Tax Shift Plan." It repeals the Business Enterprise Tax, statewide property tax, and utility property tax, and cuts the Business Profits Tax (BPT). The lost revenue would be replaced with a flat 3.95% income tax.
Opponents argue that New Hampshire is uniquely appealing to businesses because it has no income or sales tax. They argue that New Hampshire can lower business taxes by cutting spending without adding an income tax. The Free State Project also says that New Hampshire residents have "one of the lowest tax burdens as a percentage of gross income in the country."
Do you think New Hampshire should have an income tax instead of a statewide property tax? Share your opinion in the comments.