Who Wins from Tax Cuts?
The G.O.P. budget appears certain to include BET/BPT cuts. This will be their 4th BPT and 3rd BET cut in a decade. BPT cuts go primarily to multinationals. BET cuts help less profitable firms with large payrolls. However, Concord is simultaneously cutting education aid to property-poor towns and revenue sharing and making other changes that increase local property taxes.
The brunt of tax cuts falls on local property owners and renters, including businesses. In fact, 56% of the taxes paid by businesses in New Hampshire are property tax. (See pie chart.) And New Hampshire relies on property tax more than any other state in the nation, according to this map from the Tax Foundation. Overall, multinationals have gained most and businesses and individuals with a footprint in high-rate towns have suffered most from G.O.P. changes to the tax code over the last decade.
The governor also wants to remove the Interest and Dividends tax altogether over the next three years. This will give $1/4 million average tax cuts to 13 filers. Only ten percent of households file the I&D tax, and a third of those pay $0-$10 in tax.
