For years, the Granite State has been a beacon of economic freedom and a model for the world to examine. Low taxes, local control, and fiscal responsibility foster an inviting environment for businesses large and small to flock to New Hampshire. While we are sullied with disappointing news at the federal level, and almost surely are about to turn into a headwind full of more outlandish spending and high federal taxation and economic control, we can rest assured that our home economy is in great hands.
Over the next several months, the New Hampshire House of Representatives will be working hand in hand with Governor Sununu to ensure that the economic realities we have built here at home will be safeguarded for years to come. I am excited to not only represent my communities of Seabrook and Hampton Falls but to be a part of an effort to protect the legacy of the New Hampshire advantage as a member of the Ways and Means Committee.
I am extremely excited to strive to strengthen and restore our economy by reducing taxes and improving the economic climate around us. We will be taking up a variety of issues this year in the house to do so, and I would like to take a moment to highlight some of the bright spots that I see in front of us in the next several months.
First, reducing the rates of taxes on businesses is exactly the kind of support the legislature needs to give to struggling industries and helps everyone across the board. Lower business taxes allow businesses to hire more employees and pass on fewer costs to the end consumer. Reducing the Business Profit Tax and the Business Enterprise Tax will help extend the appeal of our State to businesses and residents trying to flee high tax states in other parts of the country. It only makes sense to provide tax relief with the current state of the global economy. With the COVID-19 pandemic, related macroeconomic factors negatively impact all businesses, and relieving some pressure from businesses is the least we can do to help the economy.
Next, we have two proposed Constitutional Amendments that truly embody the spirit of the New Hampshire Advantage. The first is quite simple: The General Court is prohibited from adopting a tax on earned personal income. Yes, the first part of the equation that solidifies the New Hampshire Advantage (we will discuss the second part of that equation next): No Income Tax in the State of New Hampshire. Not Now, Not Ever. No tax is more obviously theft than that of an Income Tax. Before you can even spend your hard-earned money – your labor, your possessions, your Pursuit of Happiness – the Government comes in and siphons cash right off the top. Taxes are a reaction to government spending, and broad-based taxes are even worse as they provide an endless line of credit to support increased future spending. We do not need that here in New Hampshire – we are smarter than that, and we are more responsible than that.
The second part of the equation that defines the New Hampshire advantage is addressed in the second Constitutional Amendment before the Ways and Means Committee: The General Court is prohibited from adopting any broad-based sales tax not in effect as of January 1, 2021. To further protect the New Hampshire advantage, not only will we strive to protect your income from the government directly stealing it out of your paycheck, but also prevent them from sneaking into every transaction you make and stealing it there too. A broad-based Sales Tax, like the Income Tax, is something the Granite State has prospered without for hundreds of years. There is no reason to institute a Sales Tax now, and there will never be a reason to institute a Sales Tax ever in the future.
People flock to the Granite State to start businesses and raise families free from the taxes that they left behind. By instituting these taxes, we no longer hold our advantage over our neighbors. It is long overdue that we protect our wallets and permanently solidify the New Hampshire Advantage by passing these two Constitutional Amendments.
A strong economy is the cornerstone of a healthy society. By protecting the New Hampshire Advantage, we can maintain our edge over our neighbors who fail to fight against high taxes and high government spending. There is a lot of work to be done over the next two years to safeguard our legacy of economic dominance that we have worked so hard to build. In passing Constitutional amendments and further reducing the burden of taxation on businesses, we can help to foster a strong economy and give people and institutions the chance to grow – free of the threat of broad-based taxation and relieved from oppressive tax rates. I am excited to take on this responsibility with my colleagues and provide a bright future for generations to come here in New Hampshire.
Tim Baxter is a Republican State Representative from Hampton Falls. He represents Seabrook and Hampton Falls and serves on the House Ways and Means Committee.