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Update on the status of SB 404, the effort to totally phase out the interest and dividend tax
We discussed SB 404 as part of our post earlier today on the attempt to expand the education tax credit program, HB 1686. We said it was dead for this year.
It now appears that Sen. Sanborn, the prime sponsor, is trying to revive his bill that would cost the state $50 million per year in lost tax revenue when fully implemented. The Senate Finance Committee has proposed an amendment to HB 1554 to replaces the House passed language with Sen. Sanborn’s interest and dividend phaseout. (more…)
HB 1686 to expand the education tax credit voucher program goes to the Senate Finance Committee.
As reported by NHPR, the Senate has voted along party lines in favor of HB 1686, the bill that would expand the education tax credit program passed in 2012 that has remained small because it has failed to gain business support. The expensive proposal is to expand the tax credit to interest and dividend income in a formula that would be very profitable for the many out of state investors who take advantage of New Hampshire’s friendly treatment of trust funds.
The bill now goes to the Senate Finance Committee. The context is interesting. (more…)
NHPR: With N.H. Lawmakers Focused Elsewhere, Another School Choice Bill Flies Under The Radar
Here is an edited transcript of NHPR’s reporting on the background of HB 1686, which expands the 2012 voucher program funded by business tax credits by granting tax credits on interest and dividend income: (more…)
Union Leader: Senate passes bill to kill tax on interest, dividends
This is interesting. While the House is considering HB 1686 to draw on the interest and dividend tax as a large source of additional funding for the Education Tax Credit program (the original voucher program, established in 2012 but never gaining the support it needed through donations from the New Hampshire business community), the Senate is bringing forward a bill to abolish that tax. Here is the report in the Union Leader: (more…)
Concord Monitor: N.H. school choice bill could create ‘tax shelter’ for rich
SB 193, the voucher bill currently under consideration by the House Finance Committee, is not the only school choice bill in the legislature right now. HB 1492 proposes to enable parents to send their children to any public school at local taxpayer expense.
And HB 1686 would significantly expand sources of funding for New Hampshire’s original voucher program, established by the 2012 Education Tax Credit bill, from businesses paying the business profits tax to any individual paying New Hampshire tax on interest and dividends.
If both SB 193 and HB 1686 passed, both vouchers could be added together, creating much larger annual grants for home or private schooling. (more…)
HB 1686 would be a dramatic expansion of New Hampshire’s original 2012 voucher program
The New Hampshire legislature has worked for years to make New Hampshire, according to the preamble of a 2011 bill, “the best and most attractive legal environment in the nation for trusts and fiduciary services, an environment that will continue to attract to our state good-paying jobs.” The Granite State is now what the Wall Street Journal (reported by the New Hampshire Business Review) called “a kind of mini-Switzerland for wealthy Northeast families.”
The dozens of trust companies flocking to New Hampshire generate substantial interest and dividend income subject to New Hampshire tax. School choice advocates have written HB 1686 to siphon as much of that tax revenue as possible off into grants to subsidize home and private schools. (more…)