Latest news with #PhilSletten
Boston Globe
01-04-2025
- Business
- Boston Globe
Business tax rate cuts cost N.H. at least $795 million since 2015, study finds
'The myth about cutting business taxes has cost us revenues is inaccurate,' he added. 'Cutting business taxes has allowed our economy to grow.' Advertisement But new research suggests the cuts haven't boosted business or the economy: A Get N.H. Morning Report A weekday newsletter delivering the N.H. news you need to know right to your inbox. Enter Email Sign Up The study looks at the impact of reductions to New Hampshire's two primary business taxes: the Starting in 2015, Republican lawmakers have lowered the state's Business Profit Tax from 8.5 percent to 7.5 percent, in addition to lowering the Business Enterprise Tax from 0.75 percent to 0.55 percent. 'The research clearly shows that business tax rate reductions did not generate enough economic activity to offset the revenue shortfalls they generated,' said Phil Sletten, research director at NHFPI and the study's lead author, in a statement. Advertisement The study also suggests national trends drove its business tax revenue increases, not New Hampshire's rate cuts. Sletten was able to compare New Hampshire's business tax revenues to neighboring states and found that the Granite State lagged in comparison to Vermont and Maine. New Hampshire's business tax revenues increased by 124 percent from 2015 to 2023, while Vermont revenues grew 166 percent, and Maine revenues grew 167 percent. The Granite State, however, did outpace Massachusetts, which grew 105 percent over the same time frame. Excluding New Hampshire, corporate tax revenues across New England increased by 172 percent. 'New Hampshire's business tax revenue growth lagged behind Maine and Vermont, as well as average growth nationwide, indicating New Hampshire's tax policy changes did not cause the state's increase in revenue,' said Sletten. Business tax revenues did rise over the past decade, but the study found increases were likely driven by national trends, such as surging corporate profits after the COVID-19 pandemic. Those trends also benefited states that did not reduce business tax rates, the study found. This article first appeared in Globe NH | Morning Report, our free newsletter focused on the news you need to know about New Hampshire, including great coverage from the Boston Globe and links to interesting articles from other places. If you'd like to receive it via e-mail Monday through Friday, Amanda Gokee can be reached at
Yahoo
28-01-2025
- Health
- Yahoo
Study Medicaid cuts would cost state nearly half a billion annually
Jan. 28—Proposed changes in Congress to Medicaid laws, if implemented, would cost the state nearly half a billion dollars a year in lost federal grants according to a new analysis from the New Hampshire Fiscal Policy Institute. The study was based on preliminary discussions about potential federal policy changes and spending projections from the state Department of Health and Human Services and other analysis from the nonpartisan Center on Budget and Policy Priorities. "Medicaid provides access to health services for over 180,000 Granite Staters. The proposed changes could substantially impact access to health care and the financial capacity of our state to fund public services," said Phil Sletten, NHFPI's research director and author of the report. "A reduced federal match rate could lead to the repeal of critical programs, leaving New Hampshire with difficult budget choices in an already challenging fiscal environment." Former President Barack Obama, in his Affordable Care Act law, offered states an incentive to expand Medicaid to low-income adults who made just about the eligibility amount under the traditional program. The federal government pays 90% of the cost to provide health care coverage for these new Medicaid clients while New Hampshire only gets 50% of expenses reimbursed for those on traditional Medicaid. As a result, 41 states have expanded the program. The Paragon Health Institute, a free-market health care research firm, has proposed dropping that 90% support to 50%. In turn, the group has urged Congress to lower reimbursement for those on traditional Medicaid from 50% to as low as 40% in the "income wealthiest" states that include New Hampshire. Expanded Medicaid could be at risk Both of these changes would be phased in starting in 2026 and be fully in place by 2034, Paragon said. "Part of the problem is that the FMAP (federal Medicaid) formula has an arbitrary floor on the federal reimbursement for the wealthiest states," Paragon wrote in its white paper. "Medicaid's financing structure leads states to spend more on Medicaid relative to other areas like education, infrastructure and policing and leads states to develop financing schemes and gimmicks in order to obtain as much federal money as possible." Former Trump administration economic advisor Brian Blasé and other health policy experts founded the Paragon research arm in 2021. Sletten said if adopted, this could put expanded Medicaid, known as the Granite Advantage Health Care Plan, at risk because under state law New Hampshire must exit the program if reimbursement drops below 90%. "If federal support were substantially reduced, New Hampshire would struggle to maintain current service levels, let alone address additional costs," Sletten said. "The state's capacity to find sufficient savings to offset lost revenue is limited, especially as the state faces declining tax receipts and other budgetary pressures." Only three state departments spend more than the $493 million annual price tag for these cuts to Medicaid reimbursement if they came to pass. "As the state's largest program in dollar terms, any reduction in federal Medicaid funding could substantially impact the state budget overall and force tough decisions about funding health services, education, and public safety," Sletten added. klandrigan@
