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Monday, June 1, 2009

NH biz groups pan suspension of tax credit

The Union Leader runs Norma Love's Associated Press article covering the BIA's opposition to business tax increases to fund state spending:
Jim Roche, president of the Business and Industry Association, joined two dozen business leaders in urging the state to cut spending. Roche said businesses are struggling in the poor economy and suspending the tax credit will cost the state jobs and delay the economic recovery.

The Senate Finance Committee proposed suspending the credit for two years to raise $80 million. But Roche said the losses to businesses could be much greater. He predicted lawmakers will eliminate the credit in two years when businesses seek to recoup their losses.
After sitting on the sidelines during last year's budget debate, and seeing spending increase 17.5%, the business community is now getting involved as state budget writers have targeted the private sector to pick up the public sector spending spree.

These tax increases are technically written as the suspension of a tax credit, but you should understand that no one was getting a tax break under current law. Just as federal income taxes are deductible against state income taxes, for those states foolish enough to have such things, the Business Enterprise Tax was fully credited againt the Business Profits Tax to make sure private firms weren't paying the state twice on the same money. The Senate Finance Committee thinks avoiding doubel taxation is a loophole.

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