The Republican-controlled Senate Finance Committee backed a proposal on Tuesday to cut New Hampshire’s business taxes.
The debate was similar to the discussion during the last budget cycle, when similar cuts were approved. At the time, those against argued that the state would lose revenue. Those for the reductions said it would be an economic driver.
Senate President Morse told the committee the latter prediction came true.
“Quite honestly, the reason we have money we are spending in '17 is because we did this, and I honestly believe in the future we are going to have more money, not less," Morse said.
But Democrats on the committee argued it’s too early to say these tax reductions are the reason the state’s economy is growing.
Under the measure, the state’s business profits tax or BPT would drop to 7.7 percent in 2019 and 7.5 in 2021. Meanwhile, the state’s business enterprise tax or BET would fall to .60 in 2019 and .50 in 2021.
The committee also signed off on a proposal to increase the state's BPT expense deduction amount from $100,000 to $500,000. This also passed along party lines, with Democrats opposed saying it was too big of a leap. In the last budget cycle, this amount was increased from $25,000 to $100,000.