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  • Writer's pictureRyan Poirier

Did Cutting Taxes Really Boost New Hampshire's Economy?

Updated: Sep 4, 2023

Let's Take a Closer Look

Ever heard that cutting business taxes leads to a booming economy? Well, Amanda Gokee's recent article, "Cutting business taxes did not boost N.H. economy, new report finds," challenges this idea. A report from the New Hampshire Fiscal Policy Institute dug into data from 2015 to 2022 and basically said, "Not so fast." The report didn't find solid evidence that dropping business taxes automatically means more money from a busier economy. It turns out that other factors like pandemic-related profits, inflation, and changes in federal tax rules might be the real culprits behind the extra cash flowing in.

What's interesting is that this report isn't just shaking things up in New Hampshire; it's calling into question a widely held belief that tax cuts are the magic solution for economic growth. So, next time you hear someone preaching about slashing taxes to make the economy skyrocket, you might want to take a second look and consider what really makes those economic gears turn.


Small Businesses: The Heartbeat of Our Communities

Beyond the tax talk, let's shine a light on something awesome: small businesses. These little heroes keep our neighborhoods alive and kicking. They're not just money-makers; they're the secret sauce that gives our communities their flavor. Small business owners are like local legends, bringing their personal touch and quick adaptability to the table. They're the reason we have those cozy spots we love to visit and a direct line to the pulse of our town's needs.


When we think of the corner café that knows exactly how we like our coffee or the quirky bookstore that always recommends the best reads, it's easy to see that these small businesses are more than just places to spend money. They're where friendships form, ideas are exchanged, and memories are made. They might be small in size, but their impact is anything but.


Real Credit Where Credit's Due: Small and Local Businesses Fuel Growth

Hold on a sec! Before politicians and bigwigs claim victory for booming tax revenues, let's get real. The real champs here are the small business owners and the folks who support them. That report we talked about? It's a reminder that economic growth isn't just about fancy tax cuts. It's about the sweat and innovation of small business owners who redefine what "small business" means. Their hustle, combined with the loyalty of local customers, is the true engine of growth, way beyond what any policy can do.


Let's face it, while tax cuts might grab headlines and earn some applause, they don't paint the full picture of what makes economies thrive. The community-driven energy of small businesses and the warm support of locals are the unsung heroes, creating a ripple effect that goes far beyond balance sheets. So, as we keep debating whether tax cuts are the golden ticket, let's remember that it's the small businesses and the amazing people who support them that keep our communities thriving and our economies buzzing.


Want to know more about local taxes?

Thrive's newest member, Kathleen Pelissier, is explaining how property taxes work in our newsletter. Sign up here to be in the loop when it comes out later this month!


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