As Massachusetts lawmakers dawdle over the details of a watered-down tax reform package that has increasingly lost sight of its initial goal of making our state more competitive and business friendly, New Hampshire continues to make bold moves necessary to strengthen its competitive edge.
Last night, New Hampshire Governor Chris Sununu signed an annual budget that will eliminate the state’s 4% interest and dividends tax earlier than expected, now on January 1, 2025. This accelerates a plan passed two years ago and would make New Hampshire one of nine states without taxes of any kind on a person’s income.
“New Hampshire has always been seen as a “no income tax” state, but their tax on interest and dividends was an asterisk next to their name. That’s no longer the case. As reports continue to come in showing Massachusetts is seeing massive outflows of people and wealth—much of it going to New Hampshire—the Granite state continues to demonstrate it is serious about attracting these people fleeing the increasingly oppressive atmosphere here in Massachusetts,” noted Paul D. Craney, a spokesman for the Massachusetts Fiscal Alliance.
Yesterday, the Massachusetts Senate Ways & Means Committee released their version of a tax reform bill that failed to include a tax cut on short-term capital gains included in both Governor Healey and the House’s version of the bill. This cut was seen by many as an important gesture towards both the business community and people considering leaving the state due to the negative impacts of the recently passed income surtax amendment.
“I don’t know how many reports need to come out showing that Massachusetts is at an economic crossroads before the state senate will take the issue seriously. New Hampshire has proved yet again that they’re serious about eating our lunch and continue to take bold steps to attract the people that Massachusetts is taking for granted. Instead of taking these threats to our economic well being seriously, Senate leaders are tilting at social issue windmills like offering illegal immigrants in state college tuition in their annual budget,” said Craney.
“We can either fight to keep our place in the New England economy, or we can begin down the long road of decline. Right now, Beacon Hill seems to be choosing decline,” closed Craney.