Republican gubernatorial candidate Andrew Hemingway was recently eating a hot dog from a street vender when he noticed that the paper wrapping had some writing on it. Looking closer, he saw that it was a proposal to restructure NH's revenue system as a flat tax. He turned questioningly back to the hot dog vendor, only to find empty air.
Back at the NH Center for Economic Policy Wendy P. Warcholik and J. Scott Moody high-fived. The plan to lower BET rates by taxing churches and increasing property tax bills had been launched.
Their proposal to transform the Business Enterprise Tax (BET) into a Business Flat Tax (BFT).
Back at the NH Center for Economic Policy Wendy P. Warcholik and J. Scott Moody high-fived. The plan to lower BET rates by taxing churches and increasing property tax bills had been launched.
Their proposal to transform the Business Enterprise Tax (BET) into a Business Flat Tax (BFT).
Now is the time to continue the push for tax reform as New Hampshire’s economic growth has downshifted under the weight of higher tax rates. In fact, after the 1993 tax reform the average annual growth rate was an astounding 3.8 percent, but has since fallen to an anemic rate of only 1.1 percent. This downshifting has cost New Hampshire households dearly in lost income, which is the true cost of higher taxes . . .
To be sure, the BET is a very comprehensive tax relative to other state taxes in the country. However, it is not yet a full consumption tax because it has two very large loopholes. The first loophole is that the BET does not apply to c(3) not-for-profits (though all other nonreligious not-for-profit types are included). The second loophole is that the BET does not apply to government establishments.
The BFT would close these loopholes. Each would add approximately $5 billion to the BFT base. If nothing else was done to the BFT, the tax rate would fall from the current 0.75 percent under the BET to approximately 0.55 under the BFT.
Get it? The economy is bad because the Baptist church down the street and the clerk at the town offices are sucking up all the money and skilled workers! Well, we can fix that now.
Thank you NH Center for Economic Policy. Liberty Prevails.
Thank you NH Center for Economic Policy. Liberty Prevails.