To some, taxes are a means to an end, representing the bills that are due for services ranging from the judicial system to environmental protections, or, in Oliver Wendell Holmes’ formulation, “the price we pay for a civilized society.”  To others, taxes are a policy end unto themselves, as they offer policymakers another tool to try to employ in efforts to enhance economic security or to promote economic development.

NHFPI seeks to improve public understanding of New Hampshire’s tax system, its role in financing state expenditures, the impact it has on families and individuals at different income levels, and the influence it may or may not have upon personal and business decisions.

Latest State Tax Publications

• Exempting Internet Access from Taxation Would Increase Fiscal Stress April 25, 2012 A proposal before lawmakers to exempt Internet access from New Hampshire's Communications Services Tax could reduce state revenue by as much as $12 million annually. Like the tobacco tax cut, this reduction was never accounted for in the state budget. As NHFPI's latest Issue Brief explains, the proposal would therefore add to the fiscal stress New Hampshire faces now and in the future. More to the point, it could force policymakers to make further cuts to areas such as higher education and health care.
• Testimony Regarding Constitutional Amendment CACR13 April 11, 2012 A proposed constitutional amendment to prohibit any new tax on a person’s income all but guarantees lengthy court battles over state tax policy, according to NHFPI Executive Director Jeff McLynch, who testified against CACR 13 before the Senate Internal Affairs Committee on Wednesday, April 4. McLynch also presented an analysis written by University of New Hampshire law professor Marcus Hurn, who is author of several scholarly articles on the N.H. Constitution and its taxing authority. According to Hurn, incorporating CACR 13 into the constitution “would start a cascade of constitutional questions that could take years to settle.” McLynch's testimony and a link to Hurn's analysis follow:
• Constitutional Limits on Taxes or Spending Would Increase Pressure on Local Property Taxes March 20, 2012 Local governments across New Hampshire have received less aid from the state to meet the needs of local citizens and businesses in recent years. As a result, they have been forced to increase local property taxes to preserve the education, public safety, transportation, and other services that make New Hampshire’s communities desirable places to live, work, and visit. Competing versions of a constitutional amendment now before the Legislature risk adding to these pressures when New Hampshire already relies on local property taxes more than any other state.
• Proposed Spending Cap Could Lock In Current Spending Cuts for a Decade February 13, 2012 A proposal to rewrite the New Hampshire Constitution to cap the growth of state spending at the rate of inflation would create a new set of problems when it comes to developing a smart budget.
• Testimony before the Commission to Study Business Taxes February 6, 2012 The legislative Commission to Study Business Taxes met Monday, February 6, to receive public input on its draft report recommending changes to New Hampshire's tax system. Taken together, the recommendations would mean a substantial revenue loss for the state. Had the recommendations been in place for the current biennium, they would have reduced state revenue by a conservative estimate of $100 million. This kind of revenue loss would likely require major cuts to public services, including infrastructure and education that are critical to attracting new businesses. NHFPI Executive Director Jeff McLynch testified that the proposals may hurt economic growth, not help.