Governor Chris Sununu Statement on Tax Reform
Concord - Today, Governor Chris Sununu issued the following statement on comprehensive tax reform:
"For the first time in a generation, Americans are going to receive significant relief from the Federal Government's oppressive tax code. The Tax Cuts and Jobs Act is a leap forward to a fairer and less confusing tax system. While this plan is not perfect, it is the first step towards bringing our tax code in line with the realities of a 21st-century economy.
"The core provisions of this bill allow the vast majority of Granite Staters to see a deduction in their Federal Taxes in three simple but effective ways:
1. Cuts to the Tax Bracket and Income Thresholds for everyone allowing citizens to keep more of their hard-earned income in their pockets each pay period.
2. Increases the Standard Deduction to $24,000 for joint filers; $18,000 for a head of household; and $12,000 for an individual filler increasing the take-home pay of middle-class Americans.
3. Increases the Child Tax Credit to $2,000 per child, with $1,400 of that refundable, empowers parents to make the right choices for their children.
"I was also pleased to see that my efforts advocating for specific changes were successful. I wrote to congress requesting the following, and they listened:
- Increase the Child Tax Credit
Preserve the Adoption Assistance Program
Maintain the Above the Line Student Loan Interest Deduction, on top of income bracket cuts
Reduce the Medical Expense Threshold
Preserve funding for Medicaid
"Each of these aspects of the tax bill will help put real money back in to the pockets of lower and middle income families.
"Over 63% of New Hampshire taxpayers use the standard deduction. By nearly doubling the dedication the vast majority of Granite Staters will see their tax bills slashed. A family of four at the median income of $68,485, who uses the standard dedication, would see their taxes fall by almost $2,000. A single mother of two children struggling at the adjusted poverty line of $30,044 will see her tax refund increase by over $1,500, enabling her to make the best choices for her children.
"New Hampshire's businesses will also be empowered like never before to increase investment in wages, expansion, and growth opportunities – providing yet another boost to our economy.
- Decreasing the Business Pass-Through Tax to a flat 20% provides relief to America's small business owners, leaving more money in their pockets to reinvest in our communities. In 2014 59% of Granite Staters work for a pass though business. Currently many of New Hampshire's small business owners pay a top marginal rate over 40%.
- Moving to a Territorial Tax System brings the U.S. in line with international norms, and prevents the double taxation of American businesses. No longer will American companies be penalized for investing foreign profits at home. Strict rules prevent Corporations from shifting profits abroad, ensuring that companies pay the taxes they owe and not a cent more or less.
- Reduces the Corporate Tax Rate to 21% from 35%, empowering New Hampshire's larger businesses to increase investing and innovating here at home.
"The vast majority of Granite Staters will see their taxes lowered, and our most marginalized citizens will receive a larger refund. Granite Staters know how to spend their hard earned dollars better than the government does. This is the approach we have long taken at the state level, and it is long overdue at the federal level.
"Republicans and Democrats have long recognized that our corporate tax system hamstrings business, reduces investment, and creates unfairness. Some corporations pay massive tax bills to the federal government while others use tailor-made deductions that enable them to pay close to nothing. We have long avoided these unfair business deductions in New Hampshire, and it is long overdue that the Federal Government do the same.
"By reducing the pass-through tax rate, New Hampshire's small business will be freed to invest in their local communities. Small businesses are the backbone of our economy. They invest in local talent and are the community leaders for local development."