Last fall, Gov. Sununu negotiated with the Legislature for a third tax cut for large businesses, with a promise to revoke it if revenues dropped far below plan. Now he is calling his promise “stupid” and wants towns, school districts and property taxpayers to eat the losses from cuts in funding, rather than the large companies that pay the Business Profits Tax and Business Enterprise Tax.
Understand that the companies that benefit from this cut will not include any of the tiny businesses with revenues less than $217,000 or profits less than $50,000 after they pay themselves. Such companies pay no BPT or BET. Even large companies that lose money due to the crisis will not pay BPT.
Sununu’s change, if it passed the Legislature, would shift money from taxpayers, towns and school districts to the largest, most profitable companies in the state. Some of these companies are already receiving federal subsidies. And in 2018 they gained an enormous tax cut, from 35 percent to 21 percent, from the federal government.
Federal COVID relief money (CARES) can only go to repay towns for direct expenses due to COVID-19, such as overtime and protective equipment. The federal administration has ruled that none of the money may be used to make up for lost revenues.
And now Sununu wants to cut state revenues even more to benefit our most profitable corporations. This is who he supports with his policies — not property taxpayers, not the younger generation, not schoolchildren and not towns.
43 Pine St.
(This writer, a Democrat, represents District 9 in the N.H. Senate.)