According to a recent Census Bureau report, New Hampshire now tops the nation in median household income. That gives additional weight to a new study of the Granite State’s methods of raising revenues, from the NH Fiscal Policy Institute. Here’s their announcement, and links to the study:
“The New Hampshire Fiscal Policy Institute (NHFPI) is pleased to announce the release of its latest report, An Overview of New Hampshire’s Tax System.
Looking back over the two decades from FY 1990 through FY 2009, the report explores some of the recent trends in tax collections in New Hampshire, provides a brief description of each of the state’s eight major sources of tax revenue, and highlights several characteristics of the state’s tax system that can help guide policymakers in devising a response to the fiscal challenges now before New Hampshire. Of note, the report finds that:
- Taxes in New Hampshire are substantially lower than in most states.
- New Hampshire’s tax system is regressive.
- New Hampshire’s tax system has struggled to keep pace with economic growth over the course of the past decade.
Due in large measure to the recent national recession and the continuing struggle to recover from it, New Hampshire will face a budget shortfall on the order of several hundred million dollars over the upcoming FY 2012-2013 biennium. The source and size of that deficit should compel state policymakers to use a balanced approach in resolving it, an approach that is not limited simply to reductions in state expenditures, but one that contemplates meaningful changes in the state’s tax system as well. NHFPI’s latest report not only demonstrates that policymakers can choose to generate additional revenue without significantly altering New Hampshire’s relative standing among the states, but also provides a context for assessing specific changes in tax policy.”