Dramatic increase in tax revenues for NH companies

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New Hampshire’s booming economy continues to fill state coffers with excess cash from corporate taxes, with impressive numbers released every month. But a longer look back shows the astonishing amounts that companies have contributed to the state budget over the past decade.

From fiscal 2012 to fiscal 2021, corporate tax revenues exceeded budget estimates by $ 649.6 million, or 100.1 percentage points.

That is, during that time, companies gave lawmakers an additional $ 649.6 million to spend beyond what lawmakers budgeted for.

Imagine if, over a decade, your biggest source of income was double what you planned for it. This is what happened to state tax revenues for the 2012-2021 fiscal year.

The state fiscal year 2022 started last July and the trend continues so far.

Year-to-date in July, corporate tax revenues are $ 109.5 million (27.9%) higher than the previous year and $ 72.7 million (16.9%) ) over budget.

Add that to the 2012-2021 fiscal year total, and corporate tax revenue has exceeded budget by $ 722.3 million since fiscal 2012.

To get an idea of ​​the current magnitude of state corporate tax revenues, consider that in fiscal 2012, corporate profit tax revenues from July to December totaled 140.5 millions of dollars.

Adjusted for inflation, that $ 140.5 million would be roughly $ 166 million in 2021.

BPT’s actual revenue for July-December 2021, however, was a record $ 381.2 million – $ 240.7 million (171%) more than in 2012.

The combined revenues of BPT and BET in the first six months of fiscal 2012 were $ 231.7 million.

In the first six months of fiscal 2022, they stood at $ 501.8 million, an increase of 216.5%.

The historical background shows that the state is playing with household money, so to speak, when it comes to corporate tax revenues. It further shows that small additional cuts in corporate tax rates are not only affordable, but fully justified.

The state has collected nearly $ 3/4 billion in unanticipated corporate tax revenue since 2012. Claims that tiny rate cuts will bankrupt the state or devastate essential services are laughably unfounded.

The corporate tax rate cuts that began in fiscal 2016 did not push corporate tax revenues below previous levels, as critics predicted. Then-Gov. Maggie Hassan said the rate cuts would cut corporate tax revenues by $ 90 million. Instead, corporate tax revenue was $ 132.8 million (23.4%) above plan in fiscal 2016.

During the 2012-2021 financial year, business tax revenue was only below the budget for the year on two occasions: in 2014 (before the start of the business tax reductions) and in 2020 ( when businesses have been affected by the pandemic). Huge gains in other years more than offset these relatively small declines (2% and 13% respectively).

New Hampshire businesses have supplied the state budget with astonishing amounts over the past decade. Yet whenever someone suggests small cuts in corporate tax rates, proponents of higher taxes attack corporations as greedy, selfish, stingy, even unpatriotic.

In truth, New Hampshire employers have allowed the state’s social spending to rise steadily, and most have stayed in New Hampshire despite the lure of lower corporate tax rates in other states. . They should be thanked for their contributions, not vilified. Adjusting their rates to allow them to keep some more of their income would be a reasonable way to say thank you.

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