The vetoed two-year $13.3 billion state budget may have just gotten harder to put back together after new estimates from state revenue experts predict business taxes will fail to meet expectations over the next two years.
A report from the Department of Revenue Administration to Gov. Chris Sununu and legislative leaders says all the state’s primary taxes will bring in $91 million less than state budget writers had forecast.
But in a joint statement Monday, Senate President Donna Soucy, D-Manchester, and House Speaker Steve Shurtleff, D-Penacook, said this proves their claim that two rounds of business tax cuts by two different governors from both political parties were bound to create state budget problems once the economy began to slow.
“House and Senate Democrats have cautioned throughout the budget process that additional tax breaks benefiting primarily big, out-of-state corporations would negatively impact the state’s ability to provide critical services to our citizens—that’s why our budget proposed stabilizing business tax rates,” Soucy and Shurtleff said. “Recently revised revenue estimates illustrate that concern and clearly show that Governor Sununu’s corporate handouts are not having the positive economic impact he claims.”