Publisher's Note: Wrong on BET
By Jody Reese
Gubernatorial candidate John Stephen proposes eliminating the business enterprise tax. That would be a huge mistake.
The business enterprise tax is the fairest tax in the state. Instead of taxing on profits, which can easily be manipulated, it taxes all business based on the total amount of money paid out in salary, interest and dividends. The tax resulted from former governor Craig Benson’s company Cabletron suing the State of New Hampshire over its profit tax. Cabletron was paying a huge share of the profits tax and it became clear most businesses were legally avoiding the profits tax by paying out profits in the form of salaries.
Interestingly, the business enterprise tax is a flat tax too. It’s the type of tax Steve Forbes supported when he ran for president some years ago. In fact, the business enterprise tax is so fair (there are no exemptions from it) that some form of it should be extended to the federal level to replace corporate taxes. As it is now, thousands of tax breaks and loopholes are buried in the federal business tax codes.
No one likes paying taxes, but creating unfair taxes that hit some businesses more than others adds insult to injury.
Stephen claims the business enterprise tax hurts already failing businesses. I doubt that. The tax rate is two thirds of one percent and only applies to businesses bringing in $175,000 or more.